Answer:
15.64%
Explanation:
Expected return of a portfolio is calculated using the following formula;
R(P) = wF*R(F) +wL*R(L)
R(P) =return of portfolio
wF = weight invested in Fremont
R(F) = return of Fremont
wL = weight invested in Laurelhurst
R(L) = return of Laurelhurst
Next, plug in the numbers to the formula;
R(P) = 0.56*0.13 + 0.44*0.19
R(P) = 0.0728 +0.0836
R(P) = 0.1564 or 15.64%
Expected return of portfolio is therefore 15.64%
