You Have a Portfolio Which Is Comprised of 60% of Stock

question 40

Multiple Choice

You have a portfolio which is comprised of 60% of Stock A and 40% of Stock B. What is the expected return on this portfolio?
$\begin{array}{lllr}\text { State of the Economy } & \text { Probability } &\text {E(R) }_{A}&\text { E(R) }_{B}\\\text { Weight }&&60\%&40\%\\\\\text { Boom }&.2&20\%&15\%\\\text { Normal } & .6 & 12\% &8 \% \\\text { Recegsion } & .2& -10 \% & 3\%\end{array}$

• A)7.30%
• B)7.58%
• C)8.03%
• D)8.88%
• E)9.40%

---

Definitions:

Audience Focus

The practice of tailoring content or communication to suit the interests, needs, or expectations of the intended audience.

Profile Your Audience

The process of researching and understanding the demographics, interests, and needs of the target audience for a presentation, product, or service.

Communication Goals

Objectives that individuals or organizations aim to achieve through the exchange of information.

Safety-inspection Report

A documented assessment that analyses the safety conditions of a workplace or facility to identify potential hazards.