Suppose You Own a Portfolio That Has 500 Shares of SHC

question 39

Multiple Choice

Suppose you own a portfolio that has 500 shares of SHC Company and 1,000 shares of MHC Company.The stock prices of SHC and MHC at the time of purchase were $40 and $25 per share, respectively.Given the following forecasts, what is the expected return for the portfolio?

• A)7.61%
• B)7.89%
• C)11.94%
• D)12.56%

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Definitions:

Attachment

A lasting emotional tie between two individuals.

Biologically Driven

Actions or processes influenced primarily by genetic, neurological, or physiological factors rather than environmental ones.

Survival

The ability to continue living or existing despite challenging or life-threatening conditions.

Attachment Bonds

Emotional connections that form between individuals, such as between parents and their children, providing a sense of security and safety.