You own a portfolio that has $2,200 invested in Stock A and $1,300 invested in Stock B. If the expected returns on these stocks are 11 percent and 17 percent, respectively, what is the expected return on the portfolio?

The expected return on the portfolio is 13.2%

Explanation:

Expected return on portfolio is the weighted average return rate of all the investments in the portfolio.

Expected portfolio return = ( Expected Return of Stock A x Weightage of Stock A ) +  ( Expected Return of Stock B x Weightage of Stock B )

Expected portfolio return = ( 11% x $2,200 / ($2,200+$1,300) ) +  ( 17% x $1,300 / ($2,200+$1,300) )

Expected portfolio return = ( 11% x $2,200 / $3,500 ) +  ( 17% x $1,300 / $3,500 )

Expected portfolio return = 6.9% +  6.3% = 13.2%

3,500 beverages

explanation:

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