A Portfolio Contains 3 Stocks with Expected Returns of 12

question 64

Multiple Choice

A portfolio contains 3 stocks with expected returns of 12%, 15%, and 9%, with corresponding weights of 30%, 35%, and 35%, respectively. What is the expected return of the portfolio?

• A) 12%
• B) 13%
• C) 14%
• D) 15%

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Definitions:

Payoff

The outcome or reward from a particular action or investment, often used in the context of games, economics, and decision-making scenarios.

Strategy

A plan of action designed to achieve a long-term or overall aim, often involving the allocation of resources and decision-making processes.

Public Entertainment

Activities and events intended to amuse or interest the general public, often organized by governmental or community groups.

Dominant Strategy

In game theory, a strategy that is the best for a player to follow regardless of the strategies chosen by other players in the game.