In a portfolio of the company, ₹2,00,000 have been invested in Asset-X which has an expected return of 8.5%, ₹2,80,000 in Asset-Y, which has an expected return of 10.2% and ₹3,20,000 in Asset-Z which has an expected retu

CS Professional · Financial, Treasury and Forex Management · PYQS · December 2015
In a portfolio of the company, ₹2,00,000 have been invested in Asset-X which has an expected return of 8.5%, ₹2,80,000 in Asset-Y, which has an expected return of 10.2% and ₹3,20,000 in Asset-Z which has an expected return of 12%. What is the expected return for the portfolio ?

Answer & Explanation:

Security Expected return (E) Amount invested Weights (W) EW Asset X 8.5% 2,00,000 0.25 0.02125 Asset Y 10.2% 2,80,000 0.35 0.0357 Asset Z 12% 3,20,000 0.40 0.048 8,00,000 1.00 0.10495 Expected return of portfolio = 10.5%

Topics: Portfolio Management

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