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Q1. Suppose you have 2 securities in a portfolio. Security 1 has a Return of 10% and Security 2 has a Return of 15%. Weight
Q1. Suppose you have 2 securities in a portfolio. Security 1 has a Return of 10% and Security 2 has a Return of 15%. Weight of Security 1= 40% and Weight of Security 2 = 60% Calculate this yourself. What is the Return of the Portfolio?
Q2. If R1 = 10% and R2 =10% what is portfolio return with the security weights of Q1.
Q3. Would the Portfolio return become higher if we increase the weight of the higher return security (security 2)?
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