The following information regarding a portfolio of two stocks are given: W₁ = .65, w₂ = .35, E(r₁) = .12 and E(r₂) = .14
Posted: Fri Jul 01, 2022 8:29 am
The following information regarding a portfolio of two stocks are given: W₁ = .65, w₂ = .35, E(r₁) = .12 and E(r₂) = .14. If the portfolio return is given by rp =W₁r₁ + W₂r2, which of the following regarding the portfolio expected return, E(rp) is correct? a. .260 b. .127 C. .346 d. .374