A portfolio is invested 25 percent in Stock G, 65 percent in Stock J, and 10 percent in Stock K. The expected returns on these stocks are 5 percent, 16 percent, and 29 percent, respectively. What is the portfolio's expected return?

A portfolio is invested 25 percent in Stock G, 65 percent in Stock J, and 10 percent in Stock K. The expected returns on these stocks are 5 percent, 16 percent, and 29 percent, respectively. What is the portfolio's expected return?

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

Options are following.. A)13.33% B)14.55% C)15.13% D)15.28% E)13.82%

A portfolio is invested 25 percent in Stock G, 65 percent in Stock J, and 10 percent in
Stock K. The expected returns on these stocks are 5 percent, 16 percent, and 29
percent, respectively. What is the portfolio's expected return?

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