You have invested 30 percent of your portfolio in Jacob, Inc., 40 percent in Bel
ID: 2651460 • Letter: Y
Question
You have invested 30 percent of your portfolio in Jacob, Inc., 40 percent in Bella Co and 30 percent in Edward resources. What is the expected return of your portfolio it Jacob, Bella, and Edward have expected returns of 0.10, 0.15 and 0.07 respectfully? You have invested 30 percent of your portfolio in Jacob, Inc., 40 percent in Bella Co and 30 percent in Edward resources. What is the expected return of your portfolio it Jacob, Bella, and Edward have expected returns of 0.10, 0.15 and 0.07 respectfully?Explanation / Answer
Jacob Bella Edward Total Investment 30% 40% 30% 100% Expectated Return 0.1 0.15 0.07 Weighted Return 3.00% 6.00% 2.10% 11.10% (Investment x Expected Return) So expected return of the portfolio = 11.10%