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What is the expected return on the portfolio where 50 percent of your money is invested in a risky asset with a return of 19 percent and the balance in a risk free asset that yields 5 percent

Respuesta :

The expected return of the portfolio is 12 %

The expected return is the weighted average return of the constituent of the portfolio.

E[R] = W1 * R1 + W2 * R2 + ..... Wn * Rn

For this question,

E[R] = (50% * 19%) + (50% * 5%)

E[R] = 9.5% + 2.5%

E[R] = 12% --> Expected return of portfolio.

The expected return is calculated by multiplying the weight of each asset by its expected return. Then add the values for each investment to get the total expected return for your portfolio.

Learn more about the Expected return of the portfolio here: https://brainly.com/question/15236602

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