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Based on the table below, you invested 40% on Stock A and B and 20% on Stock C. Calculate the expected return on this portfolio.
Based on the table below, you invested 40% on Stock A and B and 20% on Stock C. Calculate the expected return on this portfolio.
Year | Expected rate of returns | ||
Stock A | Stock B | Stock C | |
1 | 0.18 | 0.13 | 0.05 |
2 | 0.17 | 0.12 | 0.10 |
3 | 0.02 | 0.07 | 0.13 |
4 | 0.12 | 0.09 | 0.16 |
5 | 0.12 | 0.08 | 0.28 |
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