You own a portfolio that is 50 percent invested in Stock X, 30 percent in Stock Y,
Question:
You own a portfolio that is 50 percent invested in Stock X, 30 percent in Stock Y, and 20 percent in Stock Z. The expected returns on these three stocks are 10 percent, 18 percent, and 13 percent, respectively. What is the expected return on the portfolio?
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Step by Step Answer:
To calculate the expected return on the portfolio we simply weight the expec...View the full answer
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Related Book For 
Fundamentals Of Corporate Finance
ISBN: 9780072553079
6th Edition
Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan
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