Question

You have ​$55 comma 000. You put 17​% of your money in a stock with an expected return of 14​%, ​$34 comma 000 in a stock with an expected return of 17​%, and the rest in a stock with an expected return of 22​%. What is the expected return of your​ portfolio? The expected return of your portfolio is nothing​%.

Answer 1

`R_p = 0.1754 = 17.54%`

Step-by-step explanation:

Expected portfolio return is given as

`R_p = W_1 * R_A + W_2 * R_B + W_3 * R_C`Where

w represent % of stocks

`R_p` Return % of portfolio

`R_A, R_B, R_C`are expected return value

from data given above we have

Total amount $55000

17% of 55000 = $9350

remaining amount = 55,000 - (34000 + 9350) = $ 11650

`R_p = (((9350 * 1.14 + 34000 * 1.17 + 11650 * 1.22) - 55000))/(55000)`

`R_p = 0.1754 = 17.54%`