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7- Consider the following two investment portfolios Portfolio A Portfolio B Funds Weight Return Fund Weight Return Fund 1 .20 1% Fund 1 .01 -10%
7-
Consider the following two investment portfolios
Portfolio A | Portfolio B | ||||
Funds | Weight | Return | Fund | Weight | Return |
Fund 1 | .20 | 1% | Fund 1 | .01 | -10% |
Fund 2 | .30 | 4% | Fund 2 | .04 | 0% |
Fund 3 | .30 | 6% | Fund 3 | .90 | 5% |
Fund 4 | .20 | 9% | Fund 4 | .04 | 10% |
Fund 5 | .01 | 20% |
What is the expected return of Portfolio A? (round to two digits, e.g. 5.18%)
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