Stock a Has an Expected Return of 10 Percent Per

question 12

Multiple Choice

Stock A has an expected return of 10 percent per year and stock B has an expected return of 20 percent. If 40 percent of a portfolio's funds are invested in stock A and the rest in stock B, what is the expected return on the portfolio of stock A and stock B?

• A)10 percent
• B)20 percent
• C)16 percent
• D)14 percent

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Definitions:

Food, Conservation, And Energy Act

Also known as the 2008 Farm Bill, it's legislation focusing on agriculture policy, including food aid, conservation, and energy.

Freedom To Farm Act

A U.S. federal law enacted in 1996 aimed at allowing farmers more freedom in the planting choices for their subsidized crops, moving away from a system of rigid crop-specific subsidy payments.

Ethanol Program

Government initiatives aimed at promoting the use of ethanol, a renewable fuel made from corn and other plant materials, to reduce reliance on fossil fuels.

Inflation-Adjusted Price

The price of goods or services adjusted for the effects of inflation, allowing for the comparison of purchasing power over time.