What Is the Expected Return on This Portfolio A)950%
B)9

question 22

Multiple Choice

What is the expected return on this portfolio?
$\begin{array}{|l|l|l|l|}\hline \text { Share } & \text { Expected Return } & \text { Number of Shares } & \text { SharePrice } \\\hline \text { A } & 8 \% & 520 & € 25 \\\hline \text { B } & 15 \% & 300 & € 48 \\\hline \text { C } & 6 \% & 250 & € 26 \\\hline\end{array}$

• A)9.50%
• B)9.67%
• C)9.78%
• D)10.59%
• E)10.87%

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Definitions:

Unrelated Diversification

A business strategy where a company expands into markets or products that are not related to its current operations.

Business Cycles

The fluctuations in economic activity that an economy experiences over a period of time, marked by periods of expansion and contraction.

Economic Fluctuations

Variations in the level of economic activity over a period of time, often characterized by periods of growth (expansions) and contraction (recessions).

Retrenchment Strategy

A business strategy focused on reducing the scale or scope of a corporation's operations to become more financially stable.