You own a portfolio that has $2,800 invested in Stock A and $3,250 invested in Stock B. The expected returns on these stocks are 14.7 percent and 9.3 percent, respectively. What is the expected return on the portfolio

expected return on the portfolio=11.79%

Explanation:

Calculation of the expected return on the portfolio:

total weight =  $2,800  +$3,250 =$6,050

Portfolio expected return = weight of stock A*expected return on stock A + weight of stock B*expected return on stock B

= 2800/ 6,050 x 14.7%  + 3250 /6050 x 9.3%

0.4628 x 0.147 + 0.5372 x 0.093=

0.06803 + 0.04996

=0.1179 x 100

Portfolio expected return= 11.79% 0r rounded to 11.80%

107x106 is the answer

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