If the expected returns for assets A,B & C are, respectively, 6%, 9% and 15%, what is the expected return on a portfolio consisting of these stocks in the ratio (A:B:C) 0.3:0.3:0.4?
Possible Answers:
9%
10.5%
12.5%
15%
Thanks guys
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Verified answer
= 0.3*0.06 + 0.3*0.09 + 0.4*0.15 = 10.5%