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A portfolio included three stocks. Stock A had a weight of 40% and an expected return of 14%, Treasury Bills had a weight of 30%

A portfolio included three stocks. Stock A had a weight of 40% and an expected return of 14%, Treasury Bills had a weight of 30% and an expected return of 3%, and Stock B had a weight of 30% and an expected return of -2%. What is the expected return of the portfolio?

Selected Answer:

Expected return of the portfolio is 3.50%.

Answers:

Expected return of the portfolio is 3.50%.

Expected return of the portfolio is 5.90%.

Expected return of the portfolio is 4.30%.

Expected return of the portfolio is 5.10%.

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