Question

You form a portfolio of stocks. Jerry Stock has an expected return of 10.8%, Bob Stock has an expected return of 3.6%, and Phil Stock has an expected return of 1.5%. If 35% of your portfolio is invested in Jerry Stock, and 38% of your stock is invested in Phil Stock, what is your expected portfolio return?

(Enter your response as a percentage with two decimal places, ex: 12.34)

Answer 1

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v 1 01:49 ENG 22-02-202014 039 X fix LELF LD LG LH LI U LK LL LM EN LO LP LQ ER LSA STOCK JERRY ВОВ PHIL WEIGHT 35% 38% 27% 100% EXPECTED RETURN 10.80% 3.60% 1.50% EXPECTED PORTFOLIO RETURN = {(WEIGHT OF EACH STOCK X RETURN OF EACH STOCK) ANSWER EXPECTED PORTFOLIO RETURN = (35% X 10.80%) + ( 38% X 3.60%) + ( 27% X 1.50%) = 5.55% ... DGM beta port future INDEX INTL CAP BUD SANDRINE LEASING PV, FV, ANNUITY DIR right clean YIELD bond portfolio WACC RESI DIV POLICY NA...