Calculate the expected return on the portfolio


Problem:

You own a portfolio that is invested 38% in Stock A, 43% in Stock B, and the remainder in Stock C. The expected returns on these stocks are 10.9%, 15.4%, and 9.1%, respectively.

Requirement:

Question 1: What is the expected return on the portfolio?

  • 10.55%
  • 11.02%
  • 11.67%
  • 12.49%
  • 13.05%

Note: Show all workings.

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Finance Basics: Calculate the expected return on the portfolio
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