# Question: You are considering investing in three stocks with the following

You are considering investing in three stocks with the following expected returns:

Stock A......... 7%

Stock B......... 12

Stock C.......... 20

What is the expected return on the portfolio if an equal amount is in-vested in each stock? What would be the expected return if 50 percent of your funds is invested in stock A and the remaining funds are split evenly between stocks B and C?

Stock A......... 7%

Stock B......... 12

Stock C.......... 20

What is the expected return on the portfolio if an equal amount is in-vested in each stock? What would be the expected return if 50 percent of your funds is invested in stock A and the remaining funds are split evenly between stocks B and C?

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