Question

year to date, company y had earned a 7 percent return. during the same time peropd, company r earned 9.25 percent and company c earned -2.25 percent. if you have a portfolio made up of 35 percent y, 40 percent r and 25 percent c, what is your portfolio return

Answer 1

the portfolio return is 5.5875%

Step-by-step explanation:

The computation of the portfolio return is shown below;

Company Return Investment % Return × Investment

Y 7% 35% 2.4500%

R 9.25% 40% 3.7000%

C -2.25% 25% -0.5625%

Total 5.5875%

Hence, the portfolio return is 5.5875%