A portfolio consists of assets with the following expected returns: Technology stocks........... 20% Pharmaceutical stocks....... 15 Utility

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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?
Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...
Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...
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