The Following Information Regarding a Portfolio of Two Stocks Are

question 233

Multiple Choice

The following information regarding a portfolio of two stocks are given: w₁ = .65,w₂ = .35,E(R₁) = .12,and E(R₂) = .14.Which of the following regarding the portfolio expected return,E(R_p) ,is correct?

• A).260
• B).127
• C).346
• D).374

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Definitions:

MRP

Short for Marginal Revenue Product, it represents the additional revenue generated by employing one more unit of a factor, such as labor or capital.

Imperfect Competitor

An imperfect competitor is a market participant that does not meet the conditions of perfect competition, often having some control over the price of its products due to a lack of numerous competitors or product differentiation.

Perfect Competitor

A theoretical firm in a perfectly competitive market that cannot influence the market price and accepts the price as given.

Output

Denotes the total quantity of goods or services produced by a company, industry, or economy within a specific period.