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A portfolio is invested 23.1% in Stock A, 20.1% in Stock B, and the remainder in...

A portfolio is invested 23.1% in Stock A, 20.1% in Stock B, and the remainder in Stock C. The expected returns are 15.3%, 24%, and 21.7% respectively. What is the portfolio's expected returns? Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 12.345% then enter as 12.35 in the answer box.

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Answer #1

Portfolio's expected returns is 20.68%

Working:

Portfolio return is the sum of individual investment's return.
Weight Return Weighted return
a b c=a*b
Stock A 23.10% 15.30% 3.53%
Stock B 20.10% 24% 4.82%
Stock C 56.80% 21.70% 12.33%
Total 100% 20.68%
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