- CFA Exams
- CFA Exam: Level I 2021
- Study Session 18. Portfolio Management (1)
- Reading 52. Portfolio Risk and Return: Part I
- Subject 1. Major Return Measures
CFA Practice Question
You have a portfolio of 2 stocks, A and B, and 75% of your capital is invested in A. E(RA) = 15% and E(RB) = 12%. The expected return on the portfolio is ______.
B. 14.25%
C. 14%
A. 15%
B. 14.25%
C. 14%
Correct Answer: B
0.75 x 15% + 0.25 x 12% = 14.25%
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