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:

Strategic Plans

Strategic plans are long-term, high-level plans made by an organization to achieve specific goals, outlining the organization's mission, vision, and how it will differentiate itself from competitors.

Incremental Plans

Planning methodology that involves making small or minor updates or changes instead of large, comprehensive shifts.

Tactical Plans

Short-term actions and strategies designed to achieve specific parts of a company's overall strategic plan.