Question

A portfolio is invested 20 percent in Stock G, 55 percent in Stock and 25 percent in Stock K. The expected returns on these stocks are 11 percent, 19 percent, and 23 percent, respectively. What is the portfoto's expected return

Answer 1

Answer: 18.4%

Step-by-step explanation:

The Portfolio expected return will b calculated as the multiplication of each respective return by their respective weight. This will be:

= (20% × 11) + (55% × 19) + (25% × 23)

= (0.2 × 11) + (0.55 × 19) + (0.25 × 23)

= 2.2% + 10.45% + 5.75%

= 18.4%