
If you invested $30,000 in Disney and $10,000 in Oracle and the two companies returned 6 percent and 12 percent respectively, what was your portfolio's return?

To calculate the overall return of the portfolio, you need to determine the weighted average return, taking into account the different amounts invested in Disney and Oracle.

Here's how you can calculate it:

### 1. Calculate the individual returns:
- **Disney:**  
  Investment: $30,000  
  Return: 6%  
  Dollar return from Disney:  
  \[
  0.06 \times 30{,}000 = 1{,}800 \text{ dollars}
  \]

- **Oracle:**  
  Investment: $10,000  
  Return: 12%  
  Dollar return from Oracle:  
  \[
  0.12 \times 10{,}000 = 1{,}200 \text{ dollars}
  \]

### 2. Calculate the total dollar return:
\[
1{,}800 + 1{,}200 = 3{,}000 \text{ dollars}
\]

### 3. Calculate the total investment:
\[
30{,}000 + 10{,}000 = 40{,}000 \text{ dollars}
\]

### 4. Calculate the portfolio's return:
\[
\text{Portfolio Return} = \frac{\text{Total Dollar Return}}{\text{Total Investment}} = \frac{3{,}000}{40{,}000} = 0.075 = 7.5\%
\]

So, the overall return of your portfolio was **7.5%**.

Would you like more details on this calculation, or do you have any other questions?

Here are 5 related questions you might find useful:
1. How would the portfolio return change if the investment amounts in Disney and Oracle were different?
2. What is the significance of a weighted average return in portfolio management?
3. How does diversification impact the risk and return of a portfolio?
4. What would be the portfolio return if Disney had a negative return while Oracle had a positive return?
5. How can you calculate the expected return of a portfolio with more than two assets?

**Tip:** When calculating portfolio returns, always consider the proportion of the total investment allocated to each asset, as this significantly impacts the overall return.

Learn how to calculate the portfolio return when investing in Disney and Oracle with different returns. Detailed step-by-step solution including weighted average return formula. Suitable for advanced high school or college students studying finance or investment.

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