Sally's Broker Told Her That the Expected Return from Her

question 8

Multiple Choice

Sally's broker told her that the expected return from her portfolio was 14.2%. If 40% of her securities have an expected return of 10.3 percent and 20% have an expected return of 12.8 percent, what is the expected return of the remaining portion of her portfolio?

• A)20.9%
• B)18.8%
• C)12.5%
• D)Cannot be determined

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Definitions:

Obliviousness

The state of being unaware or unconscious of what is happening around one.

Prereflective Thinkers

Individuals who accept ideas and beliefs passively without critical examination or reflection.

Certainty

The state of being sure or confident about something, often without any doubt.

Opinions

Personal beliefs or judgments that are not necessarily based on fact or knowledge.