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Basic Question 6 of 6
Assume a portfolio with 35% stocks (S), 35% bonds (B), and 30% in a mutual fund (F). The expected return from stocks is 12%, the expected return on the mutual fund is 7%, and the expected return from bonds is 5%. What is the expected return on this portfolio?
B. 8.05%
C. 8.15%
A. 8.00%
B. 8.05%
C. 8.15%
User Contributed Comments 5
| User | Comment |
|---|---|
| BayAreaPablo | Watch out for the E(Mutual Fund) = 7% and E(Bond)=5%. If you switch these (due to fast reading) you will get 8.15%. |
| joe3 | should be careful during the test. I got the 8.15% :-( |
| surob | Luckily, I got it right. Good one for the practice |
| AUAU | Watch out. CFA exam may like this. |
| hemraj007 | lol i got this 8.15% |
I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
Learning Outcome Statements
calculate and interpret the expected value, variance, standard deviation, covariances, and correlations of portfolio returns
CFA® 2024 Level I Curriculum, Volume 1, Module 5.