A Portfolio Has an Expected Return of 11

question 170

Multiple Choice

A portfolio has an expected return of 11.57%. The portfolio consists of stock A with an expected return of 8.6% and stock B with a beta of 1.28. The risk-free rate of return is 3% and the market risk premium is 8%. What is the portfolio weight of Stock A?

• A) 31%
• B) 32%
• C) 34%
• D) 36%
• E) 37%

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Definitions:

Byzantine Art

A style of art that developed in the Eastern Roman Empire, characterized by religious iconography, extensive use of gold, and a distinctive aesthetic that emphasizes flatness and lack of perspective.

Italo-Byzantine

A style of art in the 13th and 14th centuries in Italy, influenced by Byzantine art, characterized by its emphasis on tradition, the use of gold backgrounds, and a lack of perspective.

French Gothic

An architectural style originating in 12th-century France, characterized by pointed arches, ribbed vaults, and flying buttresses.

Hellenistic

The term given to the art and culture of the roughly three centuries between the death of Alexander the Great in 323 BC and the death of Queen Cleopatra in 30 BC, when Egypt became a Roman province.