What Is the Expected Return on a Portfolio That Will

question 58

Multiple Choice

What is the expected return on a portfolio that will decline in value by 13 percent in a recession, will increase by 16 percent in normal times, and will increase by 23 percent during boom times if each scenario has equal likelihood?

• A)8.67 percent
• B)13.00 percent
• C)13.43 percent
• D)17.33 percent

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Definitions:

IAS 41

International Accounting Standard 41, which governs the accounting for agriculture.

Estimated Costs

Costs that are predicted based on historical data, trends, and analyses, used for budgeting, planning, and decision-making purposes.

Cost To Sell

The expenses directly associated with the disposal of an asset, excluding financing costs and income taxes.