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Average return on the portfolio

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Reference no: EM133113378

You are considering an investment in either individual stocks or a portfolio of stocks. The two stocks you are researching. Stock A and Stock B, have the following historical returns:

Year A B

2014. -21% -6.0%

2015 38.0% 17.0%

2016 20% -13.0%

2017 -9.0% 40.0%

2018 20.0% 11.0%

Suppose you had held a portfolio consisting of 20% of stock A and 80% of stock B.

What would have been the average return on the portfolio during this period?

Reference no: EM133113378

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