Please show the calculation, if using Excel, please show the formulas.

Practice Question:

What is your expected annual rate of return for this portfolio:

- stock A 1000 shares at $22/share expected return 10%

- stock B 750 shares at $11.50/share expected return 8.5%,

- Bond PV = $25,000 expected return 4%

- Money Market balance $10,000 expected return 1%?

Follow up questions:

Would this be the appropriate formula to calculate this: Formula: R portfolio = (weight asset A x rate of return asset A) + (weight asset B x rate of return asset B) + ?

If the bond is assumed to be a corporate bond that pays 2x annually, does it effect the calculation?)