Finance

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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?

  • Finance -

    .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.

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