Question

You own a portfolio of two stocks, A and B. Stock A is valued at $6,500 and has an expected return of 11.2 percent. Stock B has an expected return of 8.1 percent. What is the expected return on the portfolio if the portfolio value is $9,500?

Answer 1

he expected return on the portfolio =10.22%

Step-by-step explanation:

You obviously want to know the expected return of your portfolio. Its projected performance and the overall profit or loss. Anticipated yield is just that it is not guaranteed, as it is based on historic returns and used to generate prospects, but it is not a prediction. Please refer to the formula for “The expected return on the portfolio”

The expected return on the portfolio = 11.2%*6500/9500 + 8.1 %*( 9500-6500)/9500 = 10.22%