You have 4 types of assets in your portfolio: Corporate bonds earn 5% return and make up 15% of your portfolio Large cap stocks earn 12% return and make up 45% of your portfolio Government bonds earn 2% return and make up 10% of your portfolio International stocks earn 11% return and make up 30% of your portfolio What is the average rate of return on your portfolio?  Find the weighted average of the returns.   Enter your answer as two decimal places

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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You have 4 types of assets in your portfolio:

Corporate bonds earn 5% return and make up 15% of your portfolio

Large cap stocks earn 12% return and make up 45% of your portfolio

Government bonds earn 2% return and make up 10% of your portfolio

International stocks earn 11% return and make up 30% of your portfolio

What is the average rate of return on your portfolio?  Find the weighted average of the returns.  

Enter your answer as two decimal places

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