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
Related questions
Question
What is the expected return of the following portfolio of investments,
Investment r Amount Invested
DEF 4% $30,000
JKL 24 25,000
TUV 14 45,000

Transcribed Image Text:G.
27.0
13.0
8-6 Rebecca invested $9,000 in a stock that has an
expected return equal to 18 percent and $21,000 in
a stock with an 8 percent expected return. What is
the portfolio's expected return?
8-7 What is the expected return of the following portfolio
of investments, r,:
Investment
Amount Invested
DEF
4%
$30,000
JKL
24
25,000
TUV
14
45,000
8-8 Currently, the risk-free return is 3 percent, and the
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