Sherman is a novice investor. The following table shows his portfolio holdings and market values for each holding. Please calculate Sherman’s weighted average return for his portfolio.
                               Market Value           Rate of Return
Junk Bond Fund    $ 13,000.00                7.50%
Gold Fund $          19,500.00                    12.00%
Small Cap Fund  $ 36,000.00                      3.40%
Index Fund           $ 9,800.00                     6.20%
CD                         $ 41,000.00                  1.00%

Answer rating: 100% (QA)

Firstly the weighted average return for a portfolio is calculated by multiplying the return of each ... View the full answer