Question: Oracle had earned a 1.34 percent return. During the same time period, Valero Energy earned 7.96 percent and McDonald's earned 0.88 percent. If you have
Oracle had earned a −1.34 percent return. During the same time period, Valero Energy earned 7.96 percent and McDonald's earned 0.88 percent. If you have a portfolio made up of 30 percent Oracle, 25 percent Valero Energy, and 45 percent McDonald's, what is your portfolio return?"
Explain the role of weights in determining portfolio return.
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To calculate the portfolio return you need to use the weighted average of the returns of the individual assets in which the portfolio is invested Each ... View full answer
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