Question: Your client has two stocks with different risks and projected returns. They ask you what the combined risk and return would be if they put

Your client has two stocks with different risks and projected returns. They ask you what the combined risk and return would be if they put 35% in one and 65% in the other. Calculate the weighted average risk and projected return for the portfolio. For beta, use the following format .000 for projected return, use the following format 0.00%

Weighted Average Portfolio Risk is

Weighted Average Portfolio Projected Return is %

Beta Projected Return Allocation (Weighting)
Tomorrow Tech Inc 1.7 14% 35%
Steady Eddie Co 0.4 4% 65%

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!