You own a portfolio that is invested 43 percent in stock a, 16 percent in stock b, and the remainder in stock c. the expected returns on stocks a, b, and c are 9.1 percent, 16.7 percent, and 11.4 percent, respectively. what is the expected return on the portfolio

Multiply the investment fraction by the corresponding return, and add the products. The given fractions add to 59%, so the remainder is 41%. (The total of the fractions is 100%—all of the portfolio.)

... 0.43*9.1% + 0.16*16.7% + 0.41*11.4%

... = 3.913% + 2.672% + 4.674% = 11.259%

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