27.You have invested 40 percent of your portfolio in an investment with an expected return of 12 percent and 60 percent of your portfolio in an investment with an expected return of 20 percent. What is the expected return of your portfolio?

.12M+.20(P-M)=Return*P

but M=.4P

.12*.4P+.2P-.2*.4P=if I add correctly..
(.18-.08)P so return is 17.2 percent

check that.

To calculate the expected return of your portfolio, you need to first find the weighted average of the returns of each investment, based on the percentage of your portfolio invested in each.

In this case, you have invested 40 percent of your portfolio in an investment with an expected return of 12 percent, and 60 percent of your portfolio in an investment with an expected return of 20 percent.

Let's calculate the weighted average return:

Weighted average return = (Weight of investment A x Return of investment A) + (Weight of investment B x Return of investment B)

Weighted average return = (0.4 x 12%) + (0.6 x 20%)

Weighted average return = 4.8% + 12%

Weighted average return = 16.8%

Therefore, the expected return of your portfolio is 16.8%.