Daring Dora Holds 90% of Her Assets in High-Technology Stocks

question 33

Multiple Choice

Daring Dora holds 90% of her assets in high-technology stocks, earning 12%, and 10% in long-term government bonds, earning 6%. The expected return on her portfolio:

• A) is 6%.
• B) is 9%.
• C) is 11.4%
• D) is 12%.
• E) cannot be determined without knowing what the dollar value of her assets is.

---

Definitions:

Market Value

The existing rate at which an asset or service might be sold or acquired in the trading space.

Replacement Cost

The current cost of replacing an asset with a new asset of similar kind and quality, often used in insurance and accounting.

Cost Of Completion

The estimated expenses that are yet to be incurred to complete an ongoing project or to bring an asset to its intended use.

Market Value

The present cost at which a service or asset is available for purchase or sale in a market setting.