Calculate the Expected Return for a Three Asset Portfolio with the Following

question 5

Multiple Choice

Calculate the expected return for a three asset portfolio with the following $$\begin{array} { c c c c } \text { Asset } & \text { Exp. Ret. } & \text { Std. Dev } & \text { Weight } \\\hline \text { A } & 0.0675 & 0.12 & 0.25 \\\text { B } & 0.1235 & 0.1675 & 0.35 \\\text { C } & 0.1425 & 0.1835 & 0.40\end{array}$$

• A)11.71%
• B)11.12%
• C)15.70%
• D)14.25%
• E)6.75%.

---

Definitions:

Firm's Profits

The financial gain achieved by a company after subtracting all its costs from its total revenues.

Capital

Economic resources used in the production of goods, including physical assets like machinery, buildings, or human skills and knowledge.

Financial Assets

Assets that derive their value from a contractual claim, such as stocks, bonds, and bank deposits.

Bonds

Financial instruments issued by corporations, governments, or other entities to finance projects or operations, representing a loan from the investor to the issuer that is to be repaid with interest.