Sally's Broker Told Her That the Expected Return from Her

question 78

Multiple Choice

Sally's broker told her that the expected return from her portfolio was 14.2%. If 40% of her securities have an expected return of 10.3% and 20% have an expected return of 12.8%, what is the expected return of the remaining portion of her portfolio?

• A) 20.9%
• B) 18.8%
• C) 12.5%
• D) Cannot be determined

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Definitions:

Outliers

Observations that are significantly different from, and lie outside the range of, most of the other data points.

Data Point

An individual value or piece of data that is collected as part of a dataset.

Outliers

Observations in data that are significantly higher or lower than the other values.