What Is the Expected Return on This Portfolio

question 178

Multiple Choice

What is the expected return on this portfolio?

• A) 9.50%
• B) 9.67%
• C) 9.78%
• D) 10.59%
• E) 10.87%

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Definitions:

Short Run

A period in economics where at least one input is fixed and cannot be changed, limiting adjustments in production.

Long Run

A period in which all inputs, including capital assets, can be adjusted by firms in response to market conditions.

Unit of Account

A standard monetary unit of measurement of the market value/cost of goods, services, or assets.

Real Value

The value of an object or service adjusted for inflation, reflecting its true purchasing power.