Question

Returns on stocks X and Y are listed below: Period 1 2 3 4 5 6...

Returns on stocks X and Y are listed below:

Period 1 2 3 4 5 6 7
Stock X 9% 5% 6% -2% 1% -3% 11%
Stock Y -4% 3% 10% 7% 5% -3% 2%

Consider a portfolio of 40% stock X and 60% stock Y.

What is the mean of portfolio returns?

Please specify your answer in decimal terms and round your answer to the nearest thousandth (e.g., enter 12.3 percent as 0.123).

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