Bill's portfolio is divided into two parts. Seventy-five percent of the portfolio is invested in the XYZ Large Cap Blended Fund, which has an expected return of 11% and a three-year standard deviation of 14%. Twenty-five percent is invested in the XYZ Intermediate Term Bond Fund with an expected return of 4% and a three year standard deviation of 6%. What is Bill's weighted expected return for the year? A) 7.50% B) 5.75% C) 8.43% D) 9.25%
Added by Megan E.
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For the Large Cap Blended Fund, the weighted return is 75% * 11% = 8.25%. Show more…
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