Given the Following Weights and Expected Security Returns,calculate the Expected $$\begin{array} { c c } \text { Weight } & \text { Expertad Return } \\\hline .20 & .06 \\.25 & .08 \\.30 & .10 \\25 & 12\end{array}$$

question 47

Multiple Choice

Given the following weights and expected security returns,calculate the expected return for the portfolio.
$$\begin{array} { c c } \text { Weight } & \text { Expertad Return } \\\hline .20 & .06 \\.25 & .08 \\.30 & .10 \\25 & 12\end{array}$$

• A) 0.085
• B) 0.090
• C) 0.092
• D) 0.097
• E) None of the above

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Definitions:

Convex Isoquants

Curves that depict combinations of inputs that yield the same level of output in a production process, where convexity implies diminishing marginal rates of technical substitution.

Expansion Path

In economics, the curve that shows how a firm's production changes as it increases inputs, keeping the input mix proportionate.

Marginal Product

The additional output obtained by employing one more unit of a specific input, keeping all other inputs constant.

Perfect Substitutes

Two goods for which the marginal rate of substitution of one for the other is a constant.