Problem 8-03

A portfolio consists of assets with the following expected returns:

Technology stocks	24	%
Pharmaceutical stocks	13
Utility stocks	9
Savings account	2

1. What is the expected return on the portfolio if the investor spends an equal amount on each asset? Round your answer to two decimal places.

   %

2. What is the expected return on the portfolio if the investor puts 55 percent of available funds in technology stocks, 11 percent in pharmaceutical stocks, 20 percent in utility stocks, and 14 percent in the savings account? Round your answer to two decimal places.

   %