Question

A portfolio is invested 14 percent in Stock G, 55 percent in Stock J, and 31 percent in Stock K. The expected returns on these stocks are 8 percent, 14 percent, and 19 percent, respectively. What is the portfolio's expected return

Answer 1

Answer: 14.71%

Step-by-step explanation:

The portfolio expected return is a weighted average of the individual returns on the stocks.

= (14% * 8%) + (55% * 14%) + (31% * 19%)

= 14.71%