Question:

Assume you have $165,000 invested in a stock that is returning 11,50%,$85,000 invested in a stock that is?

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returning22.75%,and $235,000 invested in a stock that is returning 10.25%.What is the expected return of your portfolio?

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  1. it's just a weighted average return.

    165,000+85,000+235,000=portfolio size=485,000

    (165/485*.115)+(85/485*.2275)+(235/485...

    .0391+.0399+.0497=.1286

    expected return 12.86%


  2. It depends on what you are calling return.

    Do you count unrealized gains?

    Do you count dividends?

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