An investor has a $12,000 portfolio consisting of $7,000 in stock A with an expected return of 20% and $5,000 in stock B with an expected return of 10%. What is the investor's expected return on the portfolio?

An investor has a $12,000 portfolio consisting of $7,000 in stock A with an expected return of 20% and $5,000 in stock B with an expected return of 10%. What is the investor's expected return on the portfolio?


A) 12.2%.


B) 15.0%.


C) 15.8%.



Answer: C


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