Stock a Has an Expected Return of 10% Per Year

question 14

Multiple Choice

Stock A has an expected return of 10% per year and stock B has an expected return of 20%.If 40% of a portfolio's funds are invested in stock A,and the rest in stock B,what is the expected return on the portfolio of stock A and stock B?

• A)10%
• B)20%
• C)16%
• D)14%

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Definitions:

New Habit

A recently developed pattern of behavior that is repeated regularly and tends to occur subconsciously.

Adjust

To change or modify something in order to achieve a desired result or fit a new situation.

Lasting Change

Enduring or permanent transformation in habits, behaviors, or circumstances that remains over time.

Track

A path or course laid out for running or racing, or the act of following or monitoring progress or developments.