Computation of minimum expected annual returns

Reference no: EM1312414

In order to fund her retirement, Glenda requires a portfolio with an expected return of 12 percent per year over the next 30 years. She has decided to invest in Stock 1,2, and 3, with 25 percent in Stock 1,50 percent in Stock 2, and 25 percent in Stock3. If Stocks 1 and 2 have expected returns of 9 percent and 10 percent per year, respectively, then what is the minimum expected annual returns for stocks 3 will enable Glenda to achieve her investment requirement?

Reference no: EM1312414

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