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Problem:

You own a portfolio that is 32 percent invested in Stock X, 20 percent in Stock Y, and 48 percent in Stock Z. The expected returns on these three stocks are 10 percent, 20 percent, and 16 percent, respectively.

Required:

Question 1: What is the expected return on the portfolio?

Note: Please explain comprehensively and give step by step solution.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91148181

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