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Calculate the expected rate of return for a portfolio


Problem:

Given the following information calculate the expected rate of return for a portfolio with the following stocks:

Target earning 6%

Wal*Mart earning 10%

Delhaize earning 4%

Google earning 20%

Each of these stocks is 25% of your portfolio. What is the expected rate of return for the portfolio?

Note: Please describe comprehensively and provide step by step solution.

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Finance Basics: Calculate the expected rate of return for a portfolio
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