You own a portfolio that has $42,000 invested in Stock A and $11,500 invested in Stock B. If the expected returns on these stocks are 18% and 6%, respectively, what come closest to the expected return on the portfolio? 12%

You own a portfolio that has $42,000 invested in Stock A and $11,500 invested in Stock B. If the expected returns on these stocks are 18% and 6%, respectively, what come closest to the expected return on the portfolio? 12%

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

You own a portfolio that has $42,000 invested in Stock A and $11,500 invested in Stock B. If the expected returns on these stocks are 18% and 6%, respectively, what comes
closest to the expected return on the portfolio?
12%
15.4%
14.5%
12.2%
16.8%

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