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posledela
2 years ago
8

Jefferson's investment portfolio is shown below. What is his weighted mean ROR?

Advanced Placement (AP)
1 answer:
Anika [276]2 years ago
7 0

<span>For a simple portfolio of four  mutual funds provided by Jefferson,  the total  rate of return or ROR can be calculated as follows: </span>

Let A = Money Market

LET B= Government Bond

Let C=Prefered Stock

Let D= Common Stock

Let X= ROR

X=Allocation *ROR of A+B+C+D

X=(6400*.035)+(1500*.012)+(2300*-.021)+(600*.098)

X= 224+18-48.3+58.8

X=300.8

While mean ROR is computed as

Mean ROR=total ROR/total allocation

Mean ROR=300.8/10800

<span>=.027 or 2.7%</span>

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