Given the following annual returns for Fort Corporation, Smith Industries and the market. Fort's Smith's Market Year Rate of Return (%) Rate of Return (%) Rate of Return (%) 2015 6 5 -3 2016 10 15 8 2017 11 15 20 2018 10 10 10 2019 13 10 5 Calculate the mean return of a portfolio formed from Fort stock and the Market (25% invested in Fort).

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
10th Edition
ISBN:9781337902571
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter8: Risk And Rates Of Return
Section: Chapter Questions
Problem 22SP
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Given the following annual returns for Fort Corporation, Smith Industries and the market.
Fort's
Smith's
Market
Year
Rate of Return (%)
Rate of Return (%)
Rate of Return (%)
2015
6
5
-3
2016
10
15
8
2017
11
15
20
2018
10
10
10
2019
13
10
5
Calculate the mean return of a portfolio formed from Fort stock and the Market (25% invested in Fort).
8%
a.
8.5%
10.75%
с.
40%
d.
Transcribed Image Text:Given the following annual returns for Fort Corporation, Smith Industries and the market. Fort's Smith's Market Year Rate of Return (%) Rate of Return (%) Rate of Return (%) 2015 6 5 -3 2016 10 15 8 2017 11 15 20 2018 10 10 10 2019 13 10 5 Calculate the mean return of a portfolio formed from Fort stock and the Market (25% invested in Fort). 8% a. 8.5% 10.75% с. 40% d.
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