2. If a company has a portfolio consisting of 3 stocks as follows: 25 percent, 30 percent, and 45 percent of the total value of the portfolio are invested in stocks 1,2 and 3 respectively. And the returns of these three stocks are as follows: Stock Return 1 8.50% 2 10.20% 3 9.70% What is the return of this portfolio?

2. If a company has a portfolio consisting of 3 stocks as follows: 25 percent, 30 percent, and 45 percent of the total value of the portfolio are invested in stocks 1,2 and 3 respectively. And the returns of these three stocks are as follows: Stock Return 1 8.50% 2 10.20% 3 9.70% What is the return of this portfolio?

Fundamentals of Financial Management (MindTap Course List)

15th Edition

ISBN:9781337395250

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter8: Risk And Rates Of Return

Section: Chapter Questions

Problem 22SP

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