You have ​$55 comma 000. You put 17​% of your money in a stock with an expected return of 14​%, ​$34 comma 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 expected return of your portfolio is nothing​%.

Respuesta :

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]