What Is the Expected Return on a Portfolio Which Is $\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad$

question 33

Multiple Choice

What is the expected return on a portfolio which is invested 20% in share A,50% in share B,and 30% in share C?
$\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad$ Rate of Retulil if
$\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad$ State Occur:
$\begin{array}{|l|l|l|l|l|}\hline \text { State of Economy } & \text { Probability of State of Economy } & \text { Share A } & \text { Share B } & \text { Share C } \\\hline \text { Boom } & 20 \% & 18 \% & 9 \% & 5 \% \\\hline \text { Normal } & 70 \% & 11 \% & 7 \% & 9 \% \\\hline \text { Recession } & 10 \% & -10 \% & 4 \% & 13 \% \\\hline\end{array}$

• A)7.40%
• B)8.25%
• C)8.33%
• D)9.45%
• E)9.50%

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Definitions:

Agreeableness

The trait of being good-natured, cooperative, and trusting.

Big Five

A popular model in personality psychology referring to the five broad traits used to describe human personality: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Outgoing

Being sociable and willing to engage in conversation or activities with others.

Impression Management

The process by which individuals attempt to influence the perceptions of others about a person, object, or event by regulating and controlling information in social interactions.