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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?

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%
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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz

Tamara Schultz

Learning Outcome Statements

calculate and interpret the expected value, variance, standard deviation, covariances, and correlations of portfolio returns

CFA® 2025 Level I Curriculum, Volume 1, Module 5.