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Sagot :
Answer:
the expected return on the portfolio is 9.67%
Explanation:
The computation of the expected return on the portfolio is as follows:
= Expected return of A × Investment A ÷ Total Investment + Expected return of B × Investment B ÷ Total Investment
= 8% × $3,800 ÷ ($3,800 + $4,800) + 11% × $4,800 ÷ ($3,800 + $4,800)
= 3.53% + 6.14%
= 9.67%
Hence, the expected return on the portfolio is 9.67%
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