Portfolio Return Year-to-date,Company O had earned a -2.10 percent return.During the same time period,Company V earned 8.00 percent and Company M earned 6.25 percent.If you have a portfolio made up of 40 percent Company O,30 percent Company V,and 30 percent Company M,what is your portfolio return?
A)3.435 percent
B)5.115 percent
C)12.15 percent
D)16.35 percent

Question

Quizplus · Accepted Answer

The portfolio return is calculated by multiplying each company's return by its portfolio weight and summing the results: (0.40 * -2.10) + (0.30 * 8.00) + (0.30 * 6.25) = -0.84 + 2.40 + 1.875 = 3.435 percent.

Portfolio Return Year-To-Date,Company O Had Earned a -2