Question
You invested $10,000 in stock market, $4,000 on the stock of Google and $6,000 on Exxon Mobile. If the expected return of Google is 25%,
You invested $10,000 in stock market, $4,000 on the stock of Google and $6,000 on Exxon Mobile. If the expected return of Google is 25%, and 20% on Exxon. What is the expected return on your investment portfolio?
Step 1: find out the weights
Step 2: calculate the weighted average of the expected returns
rp= w_google * r_google + w_exxon * r_exxon 6
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Practical Financial Management
Authors: William R. Lasher
7th edition
128560721X, 9781133593669, 1133593682, 9781285607214, 978-1133593683
