Answer : expected return from your portfolio =12%
Working notes for the above answer is as under
We have provided with the information as under
| Security | Weight | Return |
| Security A | 40% | 15% |
| Security B | 60% | 10% |
| Total | 100% |
Calculation of the expected return is as follow
Rp = Wa * Ra +Wb*Rb
= 0.40*0.15 + 0.60 *0.10
= 0.6 +0.6
=0.12
=12%
expected return from your portfolio =12%
