Mr. Camden has a portfolio consisting of two investments. The first investment represents 60% of the overall value of the portfolio and is expected to return 9%. The second investment represents the remaining 40% and is expected to return 7%. What is the expected return of the portfolio?
A)8%
B)7.8%
C)9.0%
D)8.2%

Question

Mr. Camden has a portfolio consisting of two investments.   The first investment represents 60% of the overall value of the portfolio and is expected to return 9%.   The second investment represents the remaining 40% and is expected to return 7%.   What is the expected return of the portfolio?
A)​8%
B)​7.8%
C)​9.0%
D)​8.2%

Quizplus · Accepted Answer

The Answer of Mr. Camden has a portfolio consisting of two investments.   The first investment represents 60% of the overall value of the portfolio and is expected to return 9%.   The second investment represents the remaining 40% and is expected to return 7%.   What is the expected return of the portfolio?
A)​8%
B)​7.8%
C)​9.0%
D)​8.2%

Mr Camden Has a Portfolio Consisting of Two Investments