Luther invested $1,500 in stock A with a return of 11.6 percent, $500 in stock B with a return of 19 percent, and $1,000 in bond C with a return of 6.7 percent. What is the portfolio return

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Answer:

Luther

Portfolio Return:

A's return of $174

B's return of    95

C's return of   67

Total returns $336

Total investments = $3,000

Percentage return of portfolio = $336/$3,000 x 100 = 11.2%

Explanation:

A's return = $1,500 x 11.6% = $174

B's return = $500  x 19% = $95

C's return = %1,000 x 6.7% = $67

Total returns = $336

Portfolio return is the sum of the returns of the different investments.  It can be expressed in value as $336 and in percentage as 11.2% as shown above.