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Basic Question 0 of 5
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% |
You have a wonderful website and definitely should take some credit for your members' outstanding grades.
Colin Sampaleanu
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.