Stock a Has an Expected Return of 15%; Stock B

question 35

Multiple Choice

Stock A has an expected return of 15%; stock B has an expected return of 8%.What is the expected return on a portfolio is comprised of 60% of Stock A and 40% of Stock B?

• A) 12.2%
• B) 10.8%
• C) 9.1%
• D) 14.4%

---

Definitions:

Standard Deviation

A determination of the magnitude of variation or dispersion among values in a set.

Sample Mean

The average of the values in a sample, serving as an estimate of the population mean and used to make inferences about the population.

Exam Papers

Documents containing questions or problems used to test a student's knowledge on a particular subject.

Sampling Distribution

The probability distribution of a given statistic based on a random sample, often used to estimate population parameters.