Answer:
[tex]R_p = 0.1754 = 17.54%[/tex]
Explanation:
Expected portfolio return is given as
[tex]R_p = W_1 \times R_A + W_2 \times R_B + W_3 \times R_C[/tex]Where
w represent % of stocks
[tex]R_p[/tex] Return % of portfolio
[tex]R_A, R_B, R_C[/tex]are expected return value
from data given above we have
Total amount $55000
17% of 55000 = $9350
remaining amount = 55,000 - (34000 + 9350) = $ 11650
[tex]R_p = \frac{((9350 \times 1.14 + 34000 \times 1.17 + 11650 \times 1.22) - 55000)}{55000}[/tex]
[tex]R_p = 0.1754 = 17.54%[/tex]