You Have a Portfolio Which Is Comprised of 70 Percent

question 30

Multiple Choice

You have a portfolio which is comprised of 70 percent of stock A and 30 percent of stock B. What is the expected rate of return on this portfolio?

• A) 11.76 percent
• B) 11.88 percent
• C) 12.44 percent
• D) 12.56 percent
• E) 12.85 percent

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Definitions:

Utilitarianism

An ethical theory that stipulates the best action is the one that maximizes utility, usually defined as that which produces the greatest well-being of the greatest number of people.

Greatest Good

A principle aiming at the highest benefit or outcome for the greatest number of individuals, often used in ethical decision-making.

Ethical Leadership

A leadership approach that is guided by respect for ethical beliefs and values, and for the dignity and rights of others, aiming to foster an ethical culture within the organization.

Public Failing

Visible or widely recognized errors or shortcomings in performance or behavior, especially by individuals in positions of influence or power.