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%

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Definitions:

Break-even Point

The financial state where total costs and total revenues are equal, meaning there is no net loss or gain, and one has "broken even."

Break-even Chart

A graphical representation showing the relationship between total costs and total revenue at various levels of output, pinpointing where no profit or loss occurs.

Break-even Point

The point at which total cost and total revenue are equal, resulting in no net loss or gain for a business.

Unit Price

The cost of a single unit of product or measurement, allowing for easy price comparison between different sizes or quantities of the same item.