If You Invested in an Equally Weighted Portfolio of Stocks

question 13

Multiple Choice

If you invested in an equally weighted portfolio of stocks A and B,your portfolio return would be ___________ if economic growth were moderate.

• A)3.0%
• B)14.5%
• C)15.5%
• D)16.0%
• E)none of the above

---

Definitions:

Periodic Interest Rate

The interest rate charged or paid over a particular period of time, often less than a year, such as monthly or quarterly.

Annuity

A monetary product ensuring regular payouts to an individual, commonly incorporated into strategies for retirement.

Payment Interval

The frequency at which payments are made or received, such as monthly, quarterly, or annually.

Compounded Monthly

Interest calculation method where the interest is added to the principal every month, which then earns interest the following month.