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A portfolio has three stocks: Stock A, Stock B, and Stock C. Stock A has a...

A portfolio has three stocks: Stock A, Stock B, and Stock C. Stock A has a return of 17.46%. Stock B has a return of 13.18%. The weight of Stock A in the portfolio is 30%. The weight of stock B in the portfolio is 35%. The weight of Stock C in the portfolio is 35%. If the portfolio return is 39.75%, what is the return of Stock C in the portfolio?

Note: Enter your answer in percentages rounded off to two decimal points

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Answer #1
What is the return of Stock C in the portfolio
Portfolio
Stock Weighted Return Weights Actual Return (In %) (Weighted Return divided by Weights)
A 17.46 30% 58.2
B 13.18 35% 37.66
C 9.11 35% 26.03
39.75 Portfolio Return given in Question
9.11 is the Balancing Figure i.e., (39.75-17.46-13.18)
9.11 is divided by 35% of Weight, then the Actual Return is 26.03 % of Stock - C
Total Portfolio Return = 39.75%
Hence the Return of Stock - C in Portfolio 9.11 % and Actual Return is 26.03%
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