Given the Following Information, What Is the Expected Return on a Portfolio

question 53

Multiple Choice

Given the following information, what is the expected return on a portfolio that is invested 35 percent in Stock A, 45 percent in Stock B, and the balance in Stock C?

• A)12.04 percent
• B)12.16 percent
• C)12.91 percent
• D)13.46 percent
• E)11.87 percent

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Definitions:

Better Products

Goods that are of higher quality or more desirable compared to others available in the market.

Lobbying

The act of influencing decisions made by officials in the government, often practiced by special interest groups or individuals.

Democratic Representative Government

A form of government where citizens elect representatives to make decisions and pass laws on their behalf.

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A state where every resource is optimally allocated to serve each individual or entity in the best way while minimizing waste and inefficiency.