-What Is the Expected Return of a Portfolio 60 Percent

question 18

Multiple Choice

$\begin{array}{c}\begin{array}{c}\underline{\text {State of the economy}}\\\text {Boom}\\\text {Recession}\end{array}\begin{array}{c}\underline{\text {Probability}}\\.3\\.7\\\end{array}\begin{array}{c}\underline{\text {Stock Q}}\\14 \% \\8\% \\\end{array}\end{array}$

-What is the expected return of a portfolio 60 percent invested in Stock P and the remainder in Stock Q?

• A) 14.30%
• B) 13.19%
• C) 15.17%
• D) 12.56%
• E) 10.66%

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Definitions:

Quadriplegic

A condition characterized by paralysis affecting all four limbs, typically resulting from injury to the spine at a high level.

Nociceptive Pain

Pain that arises from physical damage or inflammation to the body's tissues, often perceived as sharp, aching, or throbbing.

Aching

A continuous or prolonged dull pain in a part of the body.