TeEvalyn6456 TeEvalyn6456
  • 21-02-2019
  • Business
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You have invested 40 percent of your portfolio in an investment with an expected return of 12 percent and 60 percent of your portfolio in an investment with an expected return of 20 percent. what is the expected return of your portfolio?

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MrCreighton
MrCreighton MrCreighton
  • 21-02-2019

You would take the weighted average of the investments:

.4*.12+.6*.2= .048+.12=.168 or 16.8%

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