Stock a Has an Expected Return of 10% Per Year

question 37

Multiple Choice

Stock A has an expected return of 10% per year and stock B has an expected return of
20%) If 40% of the funds are invested in stock A, and the rest in stock B, what is the expected return on the portfolio of stock A and stock B?

• A) 10%
• B) 20%
• C) 16%
• D) None of the above