<span>To calculate the overall rate of return (ROR) for a straightforward portfolio of four mutual funds provided by Jefferson, you can use the following method: </span>
Let A be the Money Market
LET B represent the Government Bond
Let C denote the Preferred Stock
Let D indicate the Common Stock
Let X equal the ROR
X is determined by the formula: Allocation * ROR of A + B + C + D
X=(6400*.035)+(1500*.012)+(2300*-.021)+(600*.098)
X= 224+18-48.3+58.8
X=300.8
The average ROR is calculated as
Mean ROR = total ROR/total allocation
Mean ROR = 300.8/10800
<span>=.027 or 2.7%</span>
