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?
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