You Want to Create a $48,000 Portfolio That Consists of Three

question 46

Multiple Choice

You want to create a $48,000 portfolio that consists of three stocks and has an expected return of 14.5 percent. Currently, you own $16,700 of stock A and $24,200 of stockB. The expected return for stock A is 18.7 percent, and for stock B it is 11.2 percent. What is the expected rate of return for stock C?

• A) 13.67 percent
• B) 14.14 percent
• C) 15.38 percent
• D) 15.87 percent
• E) 16.11 percent

---

Definitions:

Individual Income Tax Returns

Forms submitted by individuals to report income, calculate taxes owed, and determine eligibility for tax refunds.

Corporate Profits Tax

A levy placed on the profit of a firm, with different rates used for varying levels of profit.

Individual Income Tax Rate

The percentage at which an individual's earned income is taxed by the government, which can vary depending on the level of income and other factors.

Corporate Sector

The segment of the economy that is comprised of companies or corporations and is distinguished from the public sector and private individuals.