You Own a Portfolio That Has $1,900 Invested in Stock

question 49

Multiple Choice

You own a portfolio that has $1,900 invested in Stock A and $2,700 invested in Stock B.If the expected returns on these stocks are 9 percent and 15 percent,respectively,what is the expected return on the portfolio?

• A)10.57 percent
• B)11.14 percent
• C)11.96 percent
• D)12.52 percent
• E)13.07 percent

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Definitions:

Fixed Cost

Charges that are stable in spite of the levels of output or sales achieved, such as housing lease, salaries paid to employees, and insurance expenses.

Production Supplies

Items and materials used in the manufacturing process that are not directly incorporated into the final product.

Mainframe Computer

A large, powerful computer primarily used by large organizations for bulk data processing, such as census, industry and consumer statistics, and financial transaction processing.

Indirect Manufacturing Cost

Costs in manufacturing that cannot be directly tied to a specific product or job, such as maintenance, supervision, and utility costs; also known as manufacturing overhead.