You Have a Portfolio Which Is Comprised of 70% of Stock

question 62

Multiple Choice

You have a portfolio which is comprised of 70% of Stock A and 30% of Stock B. What is the expected rate of return on this portfolio?

• A)10.70%
• B)10.85%
• C)11.13%
• D)12.11%
• E)12.80%

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Definitions:

Allocation Bases

Criteria or bases used to distribute costs among different departments, products, or activities in a fair and efficient manner.

Salaries

Regular payments made by an employer to an employee, usually on a monthly or biweekly basis, in exchange for work performed.

Administration Expenses

Expenses related to the general operation of a business that are not directly tied to the production or sale of goods or services, such as office supplies and salaries of administrative personnel.

Square Footage

A measurement of area used to determine the size of a space, often utilized in real estate to measure the size of buildings or rooms.