A Portfolio Is Comprised of 60% of Stock a and 40

question 52

Multiple Choice

A portfolio is comprised of 60% of Stock A and 40% of Stock B. What is the expected return of the portfolio?

• A) 7.7%
• B) 8.3%
• C) 9.1%
• D) 6.4%

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Definitions:

Franchise Purchase

The act of buying the rights to operate a branch of an established business, allowing the purchaser to sell the franchisor's products or services under their business model and brand.

Franchise

A business model where individuals or entities are granted the rights to operate a business under the brand and guidance of an established company.

Disclosure Statements

Documents that outline the critical information and financial details every party involved needs to know in a financial transaction or legal agreement.

American Franchisee Association

An organization that represents the interests and rights of franchise owners in the United States.