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An investor has total wealth of $50,000 and wants to invest in a portfolio with 3 securities A, B, and C with expected returns E(RA)
An investor has total wealth of $50,000 and wants to invest in a portfolio with 3 securities A, B, and C with expected returns E(RA) = 20%, E(RB) = 15% and E(RC) =17% respectively. If he chooses to invest $25,000 in security A, $12,500 in security B, and $12,500 in security C, what will be the expected return of this portfolio? State your answer as a percentage rate (such as 5.55)
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