# Question: A portfolio consists of assets with the following expected returns Technology

A portfolio consists of assets with the following expected returns:

Technology stocks........... 20%

Pharmaceutical stocks....... 15

Utility stocks........... 10

Savings account........... 5

a. What is the expected return on the portfolio if the investor spends an equal amount on each asset?

b. What is the expected return on the portfolio if the investor puts

50 percent of available funds in technology stocks, 10 percent in pharmaceutical stocks, 24 percent in utility stocks, and 16 percent in the savings account?

Technology stocks........... 20%

Pharmaceutical stocks....... 15

Utility stocks........... 10

Savings account........... 5

a. What is the expected return on the portfolio if the investor spends an equal amount on each asset?

b. What is the expected return on the portfolio if the investor puts

50 percent of available funds in technology stocks, 10 percent in pharmaceutical stocks, 24 percent in utility stocks, and 16 percent in the savings account?

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