A portfolio is invested 20 percent in Stock G 55 percent in

A portfolio is invested 20 percent in Stock G, 55 percent in Stock J, and 25 percent in Stock K. The expected returns on these stocks are 6 percent, 17 percent, and 22 percent, respectively. What is the portfolio\'s expected return?

Solution

portfolio\'s expected return=Respective return*Respective weights

=(0.2*6)+(0.55*17)+(0.25*22)

which is equal to

=16.05%