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can You Please tell me how She Solve It like this , with explain Step by Step 11:50 PM Wed 17 Nov 68% TO Chapter

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can You Please tell me how She Solve It like this , with explain Step by Step image text in transcribed
11:50 PM Wed 17 Nov 68% TO Chapter 5: rate of return on a portfolio its weighted average of the rates of return of each asset comprising the portfolio, with the portfolio proportions as weights rpwll + w212 Erp) = wl E(rl) + W2 (2) where: wl-proportion of funds in security w2proportion of funds in security2 I expected return on security 12 - expected return on security 2 Example: Now suppose that 40% of the portfolio is in the mining stock (weighting for this stock Am - 40%), 40% is in the child care centre (weighting for this stock Ac - 467%) and the remaining 20% is in the fishing company (weighting for this stock Af -20%). Find the rate of return on a portfolio: To determine the rate of return on this portfolio, first calculate the contribution of each asset to the return on the portfolio, by multiplying the weighting of each asset by its rate of retum, and then add these contributions together: For the mining stock, its weighting is 40% and its rate of return is 10% seits contribution equals 40%

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