What Is the Expected Return of the Three Stock Portfolio

question 49

Multiple Choice

What is the expected return of the three stock portfolio described below?
$$\begin{array} { l c c } \text { Comman Stack } & \text { MFrket Value } & \text { Experted Raturn } \\\hline \text { Xerax } & 125,000 & 8 \% \\\text { Yelcan } & 250,000 & 25 \% \\\text { Zurebal } & 175,000 & 16 \%\end{array}$$

• A) 18.27%
• B) 14.33%
• C) 16.33%
• D) 12.72%
• E) 16.45%

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Definitions:

Rent Revenue

Income earned from leasing out properties or spaces to tenants.

Periodic Inventory System

An inventory system that updates inventory balances after a specific period, typically using physical counts.

Accounts Payable

Liabilities of a business that are debts owed to creditors for purchases made on credit.

Periodic Inventory System

An inventory system in which the inventory count and cost of goods sold are determined at set intervals, such as monthly or annually.