What Is the Expected Return of the Three Stock Portfolio

question 15

Multiple Choice

What is the expected return of the three stock portfolio described below? $$\begin{array} { l c c } \text { Common Stock } & \text { Market Value } & \text { Expected Return } \\\hline \text { Lupko Inc. } & 50,000 & 13 \% \\\text { Mackey Co. } & 25,000 & 9 \% \\\text { Nippon Inc. } & 75,000 & 14 \%\end{array}$$

• A)12.04%
• B)12.83%
• C)13.07%
• D)15.89%
• E)17.91%

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Definitions:

Sp Hybridized

Describes molecules where carbon atoms are bonded through a linear combination of one s-orbital and one p-orbital, leading to a bond angle of approximately 180 degrees.

Hybrid Atomic Orbitals

Orbitals formed by the mixing of atomic orbitals in an atom, leading to equivalent orbital shapes suited for bonding.

C-C σ Bond

A single bond formed between two carbon atoms due to the overlap of sp3 hybrid orbitals.

Acetaldehyde

An organic chemical compound with the formula CH3CHO, known as the simplest aldehyde after formaldehyde, used in various industrial processes.