An investment firm offers three types of equity investments, A, B, and C. Of the firm's clients, 30% invest in A, 50% invest in B, and 20% invest in C. The rates of return are 10%, 6%, and 7% for A, B, and C, respectively. What is the expected value of the total return rate for the firm's clients?

Question

anonymous · Answer

Multiply each investment percentage with the associated rate of return.  Then add up each product.

anonymous · Answer

For A you would do 30% * 10% = 0.03

anonymous · Answer

=3%

anonymous · Answer

thank you