Angie Owns a Portfolio Which Has an Expected Annual Return

question 57

Multiple Choice

Angie owns a portfolio which has an expected annual return of 9.76%. What is the 2-year expected return on her portfolio?

• A)13.80%
• B)19.52%
• C)23.40%
• D)27.60%
• E)29.10%

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Definitions:

Investing Activities

Financial transactions involving the purchase and sale of long-term assets and other investments not included in cash equivalents.

Open Market

A system where the trading of goods or securities is conducted in such a way that prices are determined by supply and demand.

Common Shares

Equity securities that represent ownership in a corporation, providing voting rights and potential dividends.

Debt Issue

This term refers to the process by which a company raises funds through the sale of debt instruments, such as bonds.