Question

2. Portfolio Expected Return (L01) You own a portfolio that has $2,650 invested in Stock A and $4,450 invested in Stock B. If the expected returns on these stocks are 8 percent and 11 percent, respectively, what is the expected return on the portfolio?

Answer 1

Stock	Investment	Expected Return	Expected Return Amount
A	2,650	8%	2,650 x 8% = 212
B	4,450	11%	4,450 x 11% = 489.50
			$701.50

Expected return on the portfolio = $701.15

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