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:

Capital

Financial assets or resources that individuals or organizations use to fund their operations and invest in their future growth.

Company's Shares

Units of ownership interest in a corporation or financial asset, providing a portion of the company's profits and a claim on its assets to the shareholders.

Angel Investor

An affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity.

Venture Capitalists

Investors who provide capital to startup companies and small businesses with long-term growth potential in exchange for equity.