Expected return on the portfolio


You are considering investing in three stocks with the following expected returns:

Stock A 7%
Stock B 12%
Stock C 20%

What is the expected return on the portfolio if an equal amount is invested in each stock? What would the expected return be if 50% of your funds are invested in stock A and the remaining funds divided evenly between stocks B and C?

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Finance Basics: Expected return on the portfolio
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