1. A portfolio consists of two securities and the expected return on them is 11% and 15% respectively. What is the return on this portfolio if the first security constitutes of 45% of the total portfolio? a) 13% b) 13.2% c) 12.8% d) 12.2%

1. A portfolio consists of two securities and the expected return on them is 11% and 15% respectively. What is the return on this portfolio if the first security constitutes of 45% of the total portfolio? a) 13% b) 13.2% c) 12.8% d) 12.2%

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

1. A portfolio consists of two securities and the expected
return on them is 11% and 15% respectively. What is the
return on this portfolio if the first security constitutes of 45%
of the total portfolio?
a) 13%
b) 13.2%
c) 12.8%
d) 12.2%

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