Question: Three securities have the following expected returns: A = 10 percent, B = 4 percent, and C = 12 percent. Calculate the expected return for
Three securities have the following expected returns: A = 10 percent, B = 4 percent, and C = 12 percent. Calculate the expected return for a portfolio consisting of all three securities. The portfolio weights are 20 percent in A, 40 percent in B, and 40 percent in C. Express your answer in percent, but to the nearest hundredth of a percent. Note that I have provided the percent sign; therefore, DO NOT type in the percent sign. For example, if the answer to the nearest hundredth of a percent equals 2.50% type in 2.50--not 0.0250 and not 2.50%.
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