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Suppose you are investing in the following common stocks having expected returns as follows: AMOUNT EXPECTED COMMON STOCK INVESTED RETURN One 8,000 0.14 TWO 11,000
Suppose you are investing in the following common stocks having expected returns as follows:
AMOUNT EXPECTED
COMMON STOCK INVESTED RETURN
One 8,000 0.14
TWO 11,000 0.16
Three 9,000 0.17
Four 7,000 0.13
Five 5,000 0.20
Six 13,000 0.15
Seven 9,000 0.18
a. What is the expected return (percentage) on your portfolio?
b. What would be the expected return if you quadrupled your investment in Fifth stock while leaving everything else the same?
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