Series Average return Determine the return on a portfolio that was equally inves

Question

  Series

Average return

Determine the return on a portfolio that was equally invested in large-company stocks and long-term corporate bonds. (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

What was the return on a portfolio that was equally invested in small stocks and Treasury bills? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

Explanation / Answer

Requirement 1.

Portfolio return = (Large company stock return + Long term corporate bond return)/2

Portfolio return = (11.86% + 6.28%)/2

Portfolio return = 9.07%

Requirement 2.

Portfolio return = (Small stock return + Treasury bills)/2

Portfolio return = (Small stock return + Treasury bills return)/2

Portfolio return = (16.56% + 3.88%)/2

Portfolio return = 10.22%

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