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%.

Question

Quizplus · Accepted Answer

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