Question

Portfolio Expected Return An investor puts 32% of their money in Stock 1 with a 10.15% expected return, 27% of their money in Stock 2 with a 10.95% expected return and the rest in Stock 3 with an expected return of 13.55%. What is the portfolio's expected return

Answer 1

Answer:

the expected return of the portfolio is 11.76%

Explanation:

The computation of the expected return of the portfolio is shown below:

= Respective return × Respective weights

= 0.32 × 10.15 +  0.27 × 10.95 + 0.41 × 13.55

= 3.248% + 2.9565% + 5.5555%

= 11.76%

Hence, the expected return of the portfolio is 11.76%

The same should be considered and relevant