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Suppose you have four stccks in your portfolio. The stock weights and their previous year returns are shown below. Stock Weight Rate of Return IBM
Suppose you have four stccks in your portfolio. The stock weights and their previous year returns are shown below.
Stock | Weight | Rate of Return |
IBM | 50% | 8.30% |
Starbucks | 25% | 12.50% |
Walmart | 25% | 4.70% |
Ford | 0% | -13.50% |
How much is your portfolio's rate of return in the previous year? Enter your answer in the following format: 0.1234 Hint1: Portfolio return is the weighted return, i.e., w1*r1 + w2*r2 + w3*r3 + w4*r4 Hint2: Answer is between 0.0744 and 0.0946
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