A Portfolio Has an Expected Return of 13

question 97

Multiple Choice

A portfolio has an expected return of 13.4 percent.This portfolio contains two stocks and one risk-free security.The expected return on Stock X is 12.2 percent and on Stock Y it is 19.3 percent.The risk-free rate is 4.1 percent.The portfolio value is $48,000 of which $10,000 is the risk-free security.How much is invested in Stock X?

• A)$21,548.19
• B)$19,514.14
• C)$18,478.87
• D)$22,200.14
• E)$16,904.72

---

Definitions:

Even-Handed Explanation

An impartial and balanced description or reasoning that does not favor one side over another.

Power-Influence Research

The study of how power affects individuals and groups and how it influences behaviors and decisions.

Influence Processes

The methods and techniques used to affect the attitudes, behaviors, or perceptions of others.

Contingency Theory

Contingency theory asserts that the effectiveness of leadership or decision-making processes depends on the context or environment in which they occur, suggesting there is no one best way to manage or lead.