A Portfolio Consists of $38,312 of Stock A,$42,509 of Stock

question 73

Multiple Choice

A portfolio consists of $38,312 of Stock A,$42,509 of Stock B,and $11,516 of Stock C.The expected returns on Stocks A,B,and C are 6.85 percent,12.08 percent,and 15.92 percent,respectively.What is the portfolio expected rate of return?

• A)9)98%
• B)11.21%
• C)11.88%
• D)10.39%
• E)12.07%

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Definitions:

Interest Payable

Interest payable is the amount of interest expense that has accumulated but not yet been paid by the company within a given accounting period.

Unamortized Premium

The portion of a bond's premium that has not yet been gradually written off or expensed over the bond's life to date.

Balance Sheet

A financial statement that presents a snapshot of a company's financial position, including assets, liabilities, and shareholders' equity, at a specific point in time.

Annuity

is a financial product that pays out a fixed stream of payments to an individual, typically used as an income stream for retirees.