You have $65,000. You put 24% of your money in a stock with an expected return of 10%, $33,000 in a stock with an expected return of 17%, and the rest in a stock with an expected return of 22%. What is the expected return of your portfolio? The weight of the first stock is 24%, which is given in the problem. To determine the weight of the second stock, use the following formula: $33,000 W; 565,000 The weight of the second stock is 50.77%. To determine the weight of the third stock, use the following formula: $65,000 - $15,600 - $33,000 3,000 = 0.2523 $65,000 The weight of the third stock is 25.23%. Then, to determine the expected return of the portfolio, use the following formula: E[Re] =w4E[R1] + w2E[R2] + ... +wE[Rn] Therefore, E[Rp] = 0.24x0.1 +0.5077x0.17+0.2523x0.22 = 0.1658 The expected return of your portfolio is 16.58%. Question is complete. The weight of the third stock is 25.23%. Then, to determine the expected return of the portfolio, use the following formula: E[Re] = wa E[R1] + w2E[R2] + . . . +wnE[Rn] Therefore, E[Rp] = 0.24x0.1 +0.5077x0.17 +0.2523x0.22 = 0.1658 The expected return of your portfolio is 16.58% Homework: MFL 12 Save 4 of 12 (3 complete) HW Score: 25%, 3 of 12 pts Score: 0 of 1 pt P 12-5 (similar to) Question Help You have $69,000. You put 23% of your money in a stock with an expected return of 10%, $35,000 in a stock with an expected return of 16%, and the rest in a stock with an expected return of 22%. What is the expected return of your portfolio? The expected return of your portfolio is %. (Round to two decimal places.)