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%

---

Definitions:

Mean

The average of a set of numbers, calculated by adding all the numbers together and dividing by the number of numbers.

Median

The middle value in a data set when the values are arranged in ascending or descending order.

Major League Baseball

A professional baseball organization that is the oldest of the four major professional sports leagues in the United States and Canada.

Histogram

A graphical representation of the distribution of numerical data, where the data is grouped into bins and the frequency of the data in each bin is depicted by the height of the bar.