You own a portfolio that has $2,000 invested in Stock A and $3,000 invested in S

Question

You own a portfolio that has $2,000 invested in Stock A and $3,000 invested in Stock B. If the expected returns on these stocks are 9 percent and 12 percent, respectively, what is the expected return on the portfolio? (Round your answer to 2 decimal places. (e.g., 32.16))

please help and show work if possible

You own a portfolio that has $2,000 invested in Stock A and $3,000 invested in Stock B. If the expected returns on these stocks are 9 percent and 12 percent, respectively, what is the expected return on the portfolio? (Round your answer to 2 decimal places. (e.g., 32.16))

Explanation / Answer

Portfolio Expected Return = ?(Amount Invested * Expected Return)/Total Amount Invested
= (2000*9% + 3000*12%)/(2000 + 3000)
= 540/5000
= 10.8%

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