your currently hold a portfolio of $20,000 invested in Walmart with an expected
ID: 2735681 • Letter: Y
Question
your currently hold a portfolio of $20,000 invested in Walmart with an expected return of 18%,$10,000 invest ibm with an expected return of 5% and $10,000 invested in ABC with an expected return of 11%. what is the expected return on your portfolio ? your currently hold a portfolio of $20,000 invested in Walmart with an expected return of 18%,$10,000 invest ibm with an expected return of 5% and $10,000 invested in ABC with an expected return of 11%. what is the expected return on your portfolio ? your currently hold a portfolio of $20,000 invested in Walmart with an expected return of 18%,$10,000 invest ibm with an expected return of 5% and $10,000 invested in ABC with an expected return of 11%. what is the expected return on your portfolio ?Explanation / Answer
Investment in Walmart = $20,000
Return in Walmart = 18%
Investment in IBM = $10,000
Return in IBM = 5%
Investment in ABC = $10,000
Return in ABC = 11%
Total value of investment = $20,000 + $10,000 + $10,000
= $40,000
Total value of investment is $40,000
Expected portfolio return = ($20,000 × 18%) + ($10,000 × 5%) + ($10,000 × 11%)
= $3,600 + $500 + $1,100
= $5,200
Total Expected portfolio return is $5,200
Expected return in percentage term = $5,200 / $40,000
= 13%
Expected percentage return from portfolio is 13%.
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