alleryStart learning →A portfolio is 60% in stocks returning 10% and 40% in bonds returning 5%. What is its expected return?
A7.5%
B8.0%
C7.0%
D8.5%
Answer & Solution
Correct answer: B. 8.0%
Weighted return is 0.6 times 10 plus 0.4 times 5, which equals 8.0%.
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