You Have a Portfolio Consisting Solely of Stock a and Stock

question 92

Multiple Choice

You have a portfolio consisting solely of Stock A and Stock B. The portfolio has an expected return of 10.2 percent. Stock A has an expected return of 11.7 percent while Stock B is expected to return 8.3 percent. What is the portfolio weight of Stock A?

• A) 57.01 percent
• B) 55.88 percent
• C) 63.13 percent
• D) 61.20 percent
• E) 59.97 percent

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