You Have a Portfolio Which Is Comprised of 65 Percent

question 52

Multiple Choice

You have a portfolio which is comprised of 65 percent of stock A and 35 percent of stock B.What is the expected rate of return on this portfolio?

• A)5.45 percent
• B)6.62 percent
• C)7.14 percent
• D)7.60 percent
• E) 8.22 percent

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Definitions:

Sherman Antitrust Act

A foundational United States antitrust law aimed at maintaining market competition by preventing monopolies.

Monopolies

Market structures where a single seller dominates the market, facing no competition and controlling prices.

Standard Oil Company

A U.S. company founded by John D. Rockefeller in 1870, which became a dominant force in the American petroleum industry until it was broken up by the U.S. Supreme Court in 1911 due to antitrust laws.

John D. Rockefeller

An American industrialist and philanthropist who was a co-founder of the Standard Oil Company and became one of the world's wealthiest individuals and major philanthropists.