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Assume your portfolio consists of $30,000 of Stock A and $70,000 of Stock B. Your expected return is 18% for A and 25% for B.

Assume your portfolio consists of $30,000 of Stock A and $70,000 of Stock B. Your expected return is 18% for A and 25% for B. At the end of the period the actual returns (including dividend re-investment) were 10% for A and 20% for B. What was the expected return for your portfolio? What was the actual return? What action is needed to rebalance the portfolio?

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