A portfolio has three stocks. Their portfolio weights and expected returns are as follows.       Weight E(r) Stock A 0.4 22% Stock B 0.4 4% Stock C 0.2 -18% What is the expected return on the portfolio?

Essentials Of Investments
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Chapter1: Investments: Background And Issues
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A portfolio has three stocks. Their portfolio weights and expected returns are as follows.  

 

 

Weight

E(r)

Stock A

0.4

22%

Stock B

0.4

4%

Stock C

0.2

-18%

What is the expected return on the portfolio?

 

 

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