What Is the Expected Return on a Portfolio Comprised of $3,000

question 15

Multiple Choice

What is the expected return on a portfolio comprised of $3,000 in stock K and $5,000 in stock L if the economy is normal?

• A) 3.75%
• B) 5.25%
• C) 5.63%
• D) 5.88%
• E) 6.80%

Describe brainstorming and its role in generating ideas.

Understand the importance of ensuring privacy in confidential communications.

Identify the distinctions between internal and external audiences within a company.

Describe the characteristics of effective business communication.

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Definitions:

Mutual Funds

Pooled and repackaged shares of various stocks—as well as other assets like bonds, real estate, and commodities—that allow individual investors to buy smaller stakes in more companies.

Spreading Investment Capital

The strategy of diversifying investments across different assets, industries, or geographic regions to reduce risk.

Exchange-Traded Funds

Trading vehicles that follow different stock indexes, such as the S&P 500.

Cost of Capital

The cost of capital refers to the return a company must earn on its investment projects to maintain its market value and satisfy its creditors and investors.