You own a portfolio that is 17 percent invested in Stock X, 32 percent in Stock

Question

You own a portfolio that is 17 percent invested in Stock X, 32 percent in Stock Y, and 51 percent in Stock Z. The expected returns on these three stocks are 12 percent, 15 percent, and 17 percent, respectively.

What is the expected return on the portfolio?

You own a portfolio that is 17 percent invested in Stock X, 32 percent in Stock Y, and 51 percent in Stock Z. The expected returns on these three stocks are 12 percent, 15 percent, and 17 percent, respectively.

What is the expected return on the portfolio?

Explanation / Answer

Hi,

Please find the detailed answer as follows:

Expected Return on the Portfolio = .17*12 + .32*15 + .51*17 = 15.51%

Answer is 15.51%.

Thanks.

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