You Have a Portfolio Which Is Comprised of 60 Percent

question 50

Multiple Choice

You have a portfolio which is comprised of 60 percent of stock A and 40 percent of stock B.What is the expected rate of return on this portfolio?

• A)12.76 percent
• B)12.88 percent
• C)13.44 percent
• D)13.56 percent
• E) 13.85 percent

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Definitions:

Uncollectibles

Debts owed to a company that are considered to be unlikely to be paid and written off as a loss.

Bad Debt Expense

An expense account reflecting amounts that are not expected to be collected from debtors due to their inability to pay.

Accounts Receivable

Funds that customers are required to pay to a company for products or services already received but yet to be paid for.

Investments Section

The investments section forms part of a company's financial statements, detailing all investments held by the company, including securities, bonds, and tangible assets held for long-term gains.