ou have 4 types of assets in your portfolio: Corporate bonds earn 2% return and make up 5% of your portfolio Large cap stocks earn 15% return and make up 50% of your portfolio Government bonds earn 9% return and make up 25% of your portfolio International stocks earn 7% return and make up 20% of your portfolio What is the average rate of return on your portfolio?  Find the weighted average of the returns.   Enter your answer as two decimal places and do not include the percent sign.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 5P
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You have 4 types of assets in your portfolio:

Corporate bonds earn 2% return and make up 5% of your portfolio

Large cap stocks earn 15% return and make up 50% of your portfolio

Government bonds earn 9% return and make up 25% of your portfolio

International stocks earn 7% return and make up 20% of your portfolio

What is the average rate of return on your portfolio?  Find the weighted average of the returns.  

Enter your answer as two decimal places and do not include the percent sign.  

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