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just olya [345]
3 years ago
6

stock a has an expected return of 20 and stock b has an expected return of 5. what is the expected return on a portfolio this co

mprised of 67^ of stock a and 33% stoc k b
Business
1 answer:
OlgaM077 [116]3 years ago
6 0

Answer:

15.05%

Explanation:

Calculation to determine the expected return on a portfolio

Using this formula

Expected return = (Return on stock A * Percentage invested in stock A) + ( Return on Stock B * Percentage invested in Stock B)

Let plug in the formula

Expected return= (20% * 67%) + (5% * 33%)

Expected return= 13.4% + 1.65%

Expected return= 15.05%

Therefore the expected return on a portfolio is 15.05%

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Explanation:

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Step 1

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Step 3

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3 0
3 years ago
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Answer:

the answer is D

Explanation:

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2.   To motivate managers and employees.

3.   To justify costs or compute reimbursement.

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