You own a portfolio that is 23 percent invested in Stock X, 38 percent in Stock Y, and 39 percent in Stock Z. The expected returns on these three stocks are 11 percent, 14 percent, and 16 percent, respectively. What is the expected return on the portfolio? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.; 32.16
You own a portfolio that is 23 percent invested in Stock X, 38 percent in Stock Y, and 39 percent in Stock Z. The expected returns on these three stocks are 11 percent, 14 percent, and 16 percent, respectively. What is the expected return on the portfolio? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.; 32.16
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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You own a portfolio that is 23 percent invested in Stock X, 38 percent in Stock Y, and 39
percent in Stock Z. The expected returns on these three stocks are 11 percent, 14
percent, and 16 percent, respectively.
What is the expected return on the portfolio? (Do
not round intermediate calculations and enter your answer as a percent rounded to 2
decimal places, e.g.; 32.16.)
Expert Solution
Step 1
| Stock | Weight | Return |
| X | 23% | 11% |
| Y | 38% | 14% |
| Z | 39% | 16% |
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