Lloyd owns two stocks: Amazon & Netflix. 40% of his portfolio is invested in Amazon, and the rest is invested in Netflix. The beta for Amazon is currently 1.1, and the beta for Netflix is currently 1.8. If the market risk premium is currently 5%, and the risk-free rate is 3%, what is the expected return on Lloyd's portfolio?

Answer rating: 100% (QA)

We can use the weighted average of the expected returns to calculate the expected retu... View the full answer