You have a portfolio with the following: Stock Number of Shares Price Expected R

Question

You have a portfolio with the following: Stock Number of Shares Price Expected Return W 925               $ 54            10%          X 825               31            14             Y 575               67            12             Z 800               52            13             Required: What is the expected return of your portfolio? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)   Expected return of the portfolio %  
You have a portfolio with the following:

Explanation / Answer

Ans. The above question has been solved with the help of excel.

Expected return on the portfolio is 11.95%

Stock No.of Shares Price Value of stock($) Weight of stock Expected Return(%) Weighted Return W 925 54 49950 0.320912303 10 3.209123032 X 825 31 25575 0.164310954 14 2.300353357 Y 575 67 38525 0.247510440 12 2.970125281 Z 800 52 41600 0.267266303 13 3.474461934 Total 155650 Total weighted Return 11.9540636 Value of stock = No. of shares * Price Weight of stock = Value of stock/Total value of portfolio Total value of Portfolio = Sum of the values of all stocks Weighted return = Expected Return on Stock* Expected Return on Stock Expected Return on Portfolio = Sum of Weighted Return on all the stocks

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