You Own a Portfolio That Has $2,000 Invested in Stock

question 54

Multiple Choice

You own a portfolio that has $2,000 invested in Stock A and $1,400 invested in Stock B. The expected returns on these stocks are 14 percent and 9 percent, respectively. What is the expected return on the portfolio?

• A) 11.06 percent
• B) 11.50 percent
• C) 11.94 percent
• D) 12.13 percent
• E) 12.41 percent

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Definitions:

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Standard methods and processes developed over time, recognized and followed for conducting certain actions or operations within an organization or field.

Administrative Agencies

Governmental bodies that have the authority to implement and administer particular legislation.

Detailed Decisions

Detailed decisions are thorough and comprehensive determinations or judgments made after considering all relevant facts, evidence, and information.

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The act of assigning decision-making power or tasks to another person while retaining overall responsibility.