Given the Following Weights and Expected Security Returns, Calculate the Expected

question 24

Multiple Choice

Given the following weights and expected security returns, calculate the expected return for the portfolio. $$\begin{array} { c c } \text { Weight } & \text { Expected Return } \\\hline .20 & .06 \\.25 & .08 \\.30 & .10 \\.25 & .12\end{array}$$

• A)0.085
• B)0.090
• C)0.092
• D)0.097
• E)None of the above

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Definitions:

Adverse Selection

A situation where asymmetric information results in high-risk individuals being more likely to participate in an agreement or purchase, negatively affecting the seller or insurer.

Salaried Salesman

A salesperson who is compensated with a fixed salary rather than or in addition to commissions.

Employee Turnover

The rate at which employees leave a workforce and are replaced by new hires within a given period.

Shift Supervisor

A person responsible for overseeing and managing employees and operations during a particular shift in a workplace.