Given the Following Information, What Is the Expected Return on a Portfolio

question 84

Multiple Choice

Given the following information, what is the expected return on a portfolio that is invested 30 percent in both stocks A and C, and 40 percent in stock B?

• A) 11.97 percent
• B) 12.94 percent
• C) 13.33 percent
• D) 13.84 percent
• E) 14.42 percent

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Definitions:

Marginal Tax Rates

The fraction of your income subjected to taxation, based on the qualifying tax brackets.

Net Working Capital

It calculates the short-term liquidity of a company, highlighting the funds available to run its day-to-day operations.

Net Working Capital

The variance between current assets and liabilities within a corporation.

Capital Gains

The profit from the sale of an asset such as stocks, bonds, or real estate that exceeds its purchase price.