For a portfolio made up of three stocks in equal proportion, if stock A's expected return is 12%, stock B's expected return is 16%, and stock C's expected return is 17%, the expected return of the portfolio should be 15.0%.

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megan swartz · Accepted Answer

Final Answer : True, Explanation :  The expected return of the portfolio is the weighted average of the expected returns of the individual stocks, which in this case is (12% + 16% + 17%) / 3 = 15%.

For a portfolio made up of three stocks in equal proportion, if stock A's expected return is 12%, stock B's expected return is 16%, and stock C's expected return is 17%, the expected return of the portfolio should be 15.0%.

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