CFA Practice Question

There are 294 practice questions for this study session.

CFA Practice Question

You have a portfolio of 4 stocks: A, B, C, and D. Exactly 25% of your capital is invested in each stock. E(RA) = 15%, E(RB) = 12%, E(RC) = 10% and E(RD) = 8%. The expected return on the portfolio is ______.
A. 12%
B. 11.25%
C. 10.75%
Explanation: 0.25 x 15% + 0.25 x 12% + 0.25 x 10% + 0.25 x 8% = 11.25%

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