Expected return on the portfolio


Problem:

You own a portfolio of two stocks, A and B. Stock A is valued at $6,500 and has an expected return of 11.2 percent. Stock B has an expected return of 8.1 percent.

Requirement:

Question: What is the expected return on the portfolio if the portfolio value is $9,500?

Note: Explain all steps comprehensively.

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Accounting Basics: Expected return on the portfolio
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