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5 Edwin, examining the returns of a 3 asset portfolio, needs to find the portfolio return, and has assembled the following information: expected market return
5
Edwin, examining the returns of a 3 asset portfolio, needs to find the portfolio return, and has assembled the following information: expected market return = 17.20 expected Risk-free rate = 2.15 expected return Stock X = 2.70 expected return Stock Y = -15.00 expected return Stock Z = 29.05 weight in portfolio of Stock X = 0.25 weight in portfolio of Stock Y = 0.22 What is the portfolio return?
Select one:
a.
8.49%
b.
7.04%
c.
insufficient information to determine
d.
1.48%
e.
12.77%
f.
5.58%
g.
-2.63%
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