You Have a Two-Stock Portfolio with an Expected Return of 11.7

question 84

Multiple Choice

You have a two-stock portfolio with an expected return of 11.7 percent.Stock A has an expected return of 13.8 percent while Stock B is expected to return 9.2 percent.What is the portfolio weight of Stock A?

• A)59.09%
• B)57.82%
• C)63.33%
• D)54.35%
• E)60.33%

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Definitions:

Acromial

Pertaining to the acromion, an anatomical feature of the scapula (shoulder blade) contributing to the shoulder's bony structure.

Shoulder

A part of the body where the arm is joined to the torso, consisting of several joints and muscles that allow for a wide range of movement.

Sternal

Relating to the sternum, which is the long, flat bone located in the center of the chest, connecting to the ribs via cartilage and helping to protect the heart, lungs, and major vessels.

Serous Membranes

are thin layers of tissue that cover internal organs and body cavities, secreting a fluid that lubricates and reduces friction.