Year-to-date, Oracle had earned a 12.57 percent return. During the same time period, Valero Energy earned −9.32 percent and McDonald's earned 3.45 percent. If you have a portfolio made up of 60 percent Oracle, 20 percent Valero Energy, and 20 percent McDonald's, what is your portfolio return?
A) 10.10 percent
B) 8.45 percent
C) 6.70 percent
D) 6.37 percent

Question

Quizplus · Accepted Answer

The portfolio return can be calculated by multiplying each asset's return by its weight in the portfolio and then summing these products. For Oracle: 0.60 * 12.57% = 7.542% For Valero Energy: 0.20 * (-9.32%) = -1.864% For McDonald's: 0.20 * 3.45% = 0.69% Adding these together: 7.542% - 1.864% + 0.69% = 6.368%, which rounds to 6.37%.

Year-To-Date, Oracle Had Earned a 12