Expected Return = (0.40 x 0.12) + (0.60 x 0.15) = 0.048 + 0.09 = 0.138 or 13.8%
Stock A: 40% of the portfolio, with an expected return of 12% Stock B: 60% of the portfolio, with an expected return of 15%
FV = PV x (1 + r)^n
Total Cash Flows = $100 + $120 + $150 = $370
Expected Return = (0.40 x 0.12) + (0.60 x 0.15) = 0.048 + 0.09 = 0.138 or 13.8%
Stock A: 40% of the portfolio, with an expected return of 12% Stock B: 60% of the portfolio, with an expected return of 15%
FV = PV x (1 + r)^n
Total Cash Flows = $100 + $120 + $150 = $370
Odisha Space Application Center (ORSAC)
Plot no. 45/48 (Part), Jayadev vihar, Unit-16, near Gopabandhu Academy of Administration, Chandrasekharpur, Bhubaneswar, Odisha 751023 Ushtrime Te Zgjidhura Investime
(0674)2303625 / 3293545, Fax : (0674)2300681 Expected Return = (0
