The average return expected is = 8.2%
A portfolio is a set of property/ investment. The return on a portfolio is the weighted common of all of the return of the man or woman property weighted in step with the share of general finances allotted to every property.
Expected return on portfolio:
E(R) =(WA*Ra) + (Wb*Rb) + (Wc*Rc) + Wn*Rn
W= Weight i.e., share of fund invested in every asset elegance
WA = 20%, Wb- 40%, Wc- 20%
Ra-2%, Rb-18%, Rc- 3%
E(R) = (0.2 *2%) + (0.4× 18%) + (0.2*3%) = 8.2%
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