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Problem:

You want to create a $100,000 portfoloio that consists of three stocks. Curently, you own 40,000 shares of stock A, 20,000 shares of stock B and 40,000 shares of stock C. The expected return for stock A is 5 percent, stock B is 20 percent and stock C is 15 percent.

Requirement:

Question: What is the expected rate of retrn for the protfolio?

A. 9 percent
B. 10 percent
C. 12 percent
D. 13 percent

Note: Solve the problem and show all work.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M91173509

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