What Is the Expected Return on a Portfolio That Is

question 37

Multiple Choice

What is the expected return on a portfolio that is invested 22 percent in Stock A, 36 percent in Stock B, and the remainder in Stock C? $$\begin{array} { l ccccc } { \text { State of } } & { \text { Probability of } } &&\text { Rate of Return }\\\text { Economy } & \text { State of Economy } & &{ \text { if State Occurs } } \\& & \text { Stock A } & \text { Stock B } & \text { Stock C } \\\text { Boom } & .05 & .18 & .11 & .13 \\\text { Normal } & .92 & .09& .08 & .06 \\\text { Bust } &.03& - .07& - .05 & -.14\end{array}$$

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Definitions:

Danger to Himself

A phrase often used to describe a situation where an individual poses a significant risk of self-harm or suicide.

Involuntarily Committed

The process of admitting an individual to a psychiatric facility against their will for assessment or treatment based on criteria of danger to themselves or others.

Mental Health Professional

A trained expert who offers services for the purpose of improving an individual's mental health or to treat mental illness.

Clear and Convincing Proof

Clear and Convincing Proof is a standard of evidence requiring a high level of certainty to establish the truthfulness of a fact in legal proceedings, above a preponderance of evidence but below beyond a reasonable doubt.