Reference no: EM131943752

Define the following random variables:

• X = annual rate of return on the Fidelity Select Biotechnology Fund
• Y = annual rate of return on the Fidelity National Information Services Fund
• Z = annual rate of return on the Fidelity Select Defense and Aerospace Fund

Suppose that the population mean returns for each random variable are the following:

• μ x  = 10.8%
• μ y  = 16.3%
• μ z  = 14.1%

What is the (population) mean annual return for a portfolio consisting of 50% Biotechnology Fund, 30% Information Services Fund, and 20% Defense and Aerospace Fund?

Enter your answer as percent annual return, rounded to 2 decimal places of accuracy. Do not type the % symbol.