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

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Definitions:

Comparative Balance Sheet

A financial statement that presents the assets, liabilities, and shareholders' equity at different time points to analyze trends.

Net Cash

The amount of cash available after accounting for cash inflows and outflows, reflecting the actual liquidity position of an individual or business at a specific point in time.

Operating Activities

Business activities related to daily operations, including sales, supply chain management, and other core functions.

Accounts Receivable

Funds that a business has yet to receive from its customers for the products or services it has already provided.