A portfolio consists of $200,000 in Treasury bills that yield 6.7%,$650,000 in Proctor & Gamble stock with an expected return of9.1%, and $250,000 in Exxon Mobil stock with an expected return of10.8%. What is the expected return for this portfolio?9.21%9.15%य8,95%9.04%

Answer:Correct answer is 9.04%Expected return = 0.0122 + 0.0538 + 0.0245 = 0.0904 = 9.04%Therefore,…

Answered: A portfolio consists of $200,000 in…

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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A portfolio consists of $200,000 in Treasury bills that yield 6.7%, $650,000 in Proctor & Gamble stock with an expected return of 9.1%, and $250,000 in Exxon Mobil stock with an expected return of 10.8%. What is the expected return for this portfolio? 9.21% 9.15% य 8,95% 9.04%