You Have a Portfolio Consisting Solely of Stock a and Stock

question 19

Multiple Choice

You have a portfolio consisting solely of stock A and stock B. The portfolio has an expected return of 10.2%. Stock A has an expected return of 12% while stock B is expected to return 7%. What is the portfolio weight of stock A?

• A) 46%
• B) 54%
• C) 58%
• D) 64%
• E) 70%

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Definitions:

Decreasing Farsightedness

The improvement or reduction of the condition where distant objects can be seen clearly, but close ones do not come into proper focus.

Longer Adjustment

The extended period of time required for an individual to adapt or become accustomed to new conditions or changes.

Expert Thought

Advanced cognitive process characterized by the ability to solve complex problems, make decisions, and understand concepts deeply, often in a specific domain of knowledge.

Routine

A set of usual or fixed procedures or practices, especially one followed regularly, contributing to efficiency and order.