Answered

Welcome to Westonci.ca, the ultimate question and answer platform. Get expert answers to your questions quickly and accurately. Explore our Q&A platform to find in-depth answers from a wide range of experts in different fields. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform.

A portfolio is entirely invested into BBB stock, which is expected to return 16.4 percent, and ZI bonds, which are expected to return 8.6 percent. Stock BBB comprises 48 percent of the portfolio. What is the expected return on the portfolio

Sagot :

Answer:

the expected return on the portfolio is 12.34%

Explanation:

The computation of the expected return on the portfolio is shown below:

Expected Return is

= Investment in BBB ×  Return+ Investment in ZI × Return  

= 16.4 × 48% + 8.6 ×52%      

= 7.87% + 4.47%    

= 12.34%

hence, the expected return on the portfolio is 12.34%

Thank you for choosing our service. We're dedicated to providing the best answers for all your questions. Visit us again. Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. Your questions are important to us at Westonci.ca. Visit again for expert answers and reliable information.