Calculate the Expected Return for a Three Asset Portfolio with the Following

question 40

Multiple Choice

Calculate the expected return for a three asset portfolio with the following
$\begin{array}{cccc}\text { Asset } & \text { Exp. Ret. } & \text { Std. Dev } & \text { Weight } \\\hline \mathrm{A} & 0.0675 & 0.12 & 0.25 \\\mathrm{~B} & 0.1235 & 0.1675 & 0.35 \\\mathrm{C} & 0.1425 & 0.1835 & 0.40\end{array}$

• A) 11.71%
• B) 11.12%
• C) 15.70%
• D) 14.25%
• E) 6.75%.

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Definitions:

Dilutive Potential

The possibility that the issuance of additional securities could decrease earnings per share or decrease an ownership interest.

After-tax Effect

The impact of taxes on a company's financial transactions, typically focusing on the net result after accounting for the taxation impact.

Accounting Policies

The distinct protocols, core principles, guidelines, directives, and procedures followed by a company for the preparation and presentation of its financial reports.

Retrospective Adjustment

An adjustment applied to the financial statements of prior periods to correct an error or to reflect a change in accounting policy as if that policy had always been applied.