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:

Prenumbered Voucher

A control mechanism used in accounting to ensure that all transactions are recorded and processed in a sequential manner, mitigating errors and fraud.

Expenditure

Money spent or cost incurred in an organization's efforts to generate revenue, representing the cost of doing business.

Bank Reconciliation

The process of comparing a company's bank account balance as reported by the bank with the company's own records and reconciling any differences.

Deposit in Transit

Funds that have been sent to a bank but not yet recorded on the bank's records, often seen in bank reconciliation statements.