单选题
An investor owns the following portfolio today.
|
Stock
|
Market Value
|
Expected Annual Return
|
|
R
|
$ 2000
|
17%
|
|
S
|
$ 3200
|
8%
|
|
T
|
$ 2800
|
13%
|
The investor"s expected total rate of return( increase in market value) after three years is closest to:
【正确答案】
C
【答案解析】Portfolio Value : = sum of market values = 2000 + 3200 + 2800 = 8000
Portfolio Weights:
w
A
= 2000/8000 = 0.25, w
B
= 3200/8000 = 0.40, w
C
= 2800/8000 = 0.35
ER
portfolio
= ( ER
stook
) ( W
% of funds invested in each of the stocks
) = w
A
ER
A
+ w
B
ER
B
+ w
C
ER
C
= (0.25×17.0)+(0.40×8.0)+(0.35×13.0)=12.0%
Expected Return after three years = (1 + return)
3
-1=(1.12)
3
-1=1.405-1=0.405, or 40.5%.