What Is the Expected Return of the Three Stock Portfolio

question 36

Multiple Choice

What is the expected return of the three stock portfolio described below?
$$\begin{array} { l c c } \text { Comuman Stack } & \text { Markat Value } & \text { Expacted Raturn } \\\hline \text { Lupkka Inc. } & 50,000 & 13 \% \\\text { Mackey Co. } & 25,000 & 9 \% \\\text { Nippan Inc. } & 75,000 & 14 \%\end{array}$$

• A) 12.04%
• B) 12.83%
• C) 13.07%
• D) 15.89%
• E) 17.91%

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Definitions:

Prosperity

A state of economic well-being characterized by high levels of income, employment, and production.

Depression

A severe and prolonged reduction in economic activity as occurred during the 1930s

Scarce Resources

Natural, human, and capital resources that are limited in supply, which necessitates choices about how they are allocated.

Unlimited Wants

The economic principle that humans have infinite desires or wishes for goods and services, despite having limited resources.