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You own a portfolio that has $2,250 invested in Stock A and $3,450 invested in Stock...

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Finance

You own a portfolio that has $2,250 invested in Stock A and$3,450 invested in Stock B. If the expected returns on these stocksare 11 percent and 17 percent, respectively, what is the expectedreturn on the portfolio?

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4.1 Ratings (801 Votes)

Ans $ 834

Stock INVESTMENT (i) Return (ii) Investment* Return (i)* (ii)
A                   2,250 11%                                     247.50
B                   3,450 17%                                     586.50
Total                   5,700                                     834.00

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You own a portfolio that has $2,250 invested in Stock A and$3,450 invested in Stock B. If the expected returns on these stocksare 11 percent and 17 percent, respectively, what is the expectedreturn on the portfolio?

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