You own a portfolio that is 16 percent invested in Stock X, 31 percent in Stock Y, and 53 percent in Stock Z. The expected returns on these three stocks are 9 percent, 12 percent, and 14 percent, respectively. What is the expected return on the portfolio? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return on the portfolio %

The expected retained of a portfolio refers to the addition of the multiplication of the of weight of each asset and the expected return of each asset of each asset in the portfolio.

Since the weight of Stocks X, Y and Z are 16%, 31% and 53% respectively, and their expected values are 9%, 12% and 14% respectively, the expected return of the portfolio in this question can therefore be estimated as follows:

Portfolio expected return = (16% × 9%) + (31% × 12%) + (53% × 14%)

= 1.44% + 3.72% + 7.42%

Portfolio expected return = 12.58%

Therefore, the expected return on the portfolio is 12.58%.