ESSENTIALS OF INVESTMENTS>LL<+CONNECT
ESSENTIALS OF INVESTMENTS>LL<+CONNECT
11th Edition
ISBN: 9781264001026
Author: Bodie
Publisher: MCG
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Chapter 6, Problem 1CP
Summary Introduction

Adequate Information:

    Asset Expected Return Standard Deviation Weight
    X 15% 22% 0.50
    Y 10% 8% 0.40
    Z 6% 3% 0.10

To calculate:

The expected return of 3 asset portfolio

Introduction:

Expected return stands to be the loss or profit, anticipated by the investor on the investment which represents its expected return. In other words, it is the estimation with respect to the value of investments which comprises of change in dividend, payment and price computed from the probability distribution curve.

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