Your portfolio has three asset classes. U. S government T bills account for 47% of the portfolio, large company stocks constitute another 33%, and small company stocks make up the remaining 20%. If teh expected returns are 2.41% for the T-bills, 11.41% for the large company stocks, and 17.15% for the small company stocks, what is the expected return on the portfolio?

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Portfolio Management

Portfolio management is the process by which an investor decides that how the person will invest in a variety of assets in order to get a desired return in the future. A portfolio means a pool of assets that includes securities, bonds, and other investment instruments which helps in risk minimization of the money that has been invested. In other words, it can be said that a portfolio means a combination of assets in which an investor decides to invest their money in order to get a lump sum return in the future or even a series of cash flow that the person is expecting at the end of their job life.