What Is the Expected Return of the Three Stock Portfolio

question 33

Multiple Choice

What is the expected return of the three stock portfolio described below? $$\begin{array} { l c c } \text { Common Stock } & \text { Market Value } & \text { Expected Return } \\\hline \text { Ando Inc. } & 95,000 & 12.0 \% \\\text { Bee Co. } & 32,000 & 8.75 \% \\\text { Cool Inc. } & 65,000 & 17.7 \%\end{array}$$

• A)18.45%
• B)12.82%
• C)13.38%
• D)15.27%
• E)16.67%

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Definitions:

Shortage

A situation in which the demand for a product or service exceeds the supply available at a specific price.

Tax on Good

A financial charge imposed by a government on the sale of a product or service, affecting its price.

Demand Curve

A graph showing the relationship between the price of a good or service and the quantity demanded for it at those prices.

Good Sold

Refers to merchandise or items that have been purchased or exchanged in a transaction.