Question

year to date, company y had earned a 7 percent return. during the same time peropd, company r earned 9.25 percent and company c earned -2.25 percent. if you have a portfolio made up of 35 percent y, 40 percent r and 25 percent c, what is your portfolio return

Answer 1

Answer:

the portfolio return is 5.5875%

Explanation:

The computation of the portfolio return is shown below;

Company         Return           Investment %              Return  × Investment

Y                         7%                    35%                               2.4500%

R                        9.25%               40%                               3.7000%

C                        -2.25%              25%                              -0.5625%

Total                                                                                   5.5875%

Hence, the portfolio return is 5.5875%