You Are Contemplating Investing in Two Stocks ABC and XYZ

question 16

Multiple Choice

You are contemplating investing in two stocks ABC and XYZ that have an expected return of 12.0% and 9.0%, respectively.If your target expected return is 10.0%, what would be the weight in ABC?

• A)50%
• B)33%
• C)67%
• D)100%

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Definitions:

Addiction

A psychological and physical inability to stop consuming a chemical, drug, activity, or substance, even though it is causing harm.

Seasonal Affective Disorder

A type of depression that occurs at a specific time of the year, typically in winter, when there is less natural sunlight.

Ventricles

Hollow organs or cavities in the body; in the brain, they are filled with cerebrospinal fluid and linked to the central nervous system's function.

Schizophrenia

A long-term mental disorder involving a breakdown in the relation between thought, emotion, and behavior, leading to faulty perception and inappropriate actions and feelings.