You Have a Portfolio Which Is Comprised of 65 Percent

question 78

Multiple Choice

You have a portfolio which is comprised of 65 percent of stock A and 35 percent of stock B. What is the expected rate of return on this portfolio?

• A) 5.45 percent
• B) 6.62 percent
• C) 7.14 percent
• D) 7.60 percent
• E) 8.22 percent

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Definitions:

Cartel

An association of manufacturers or suppliers with the purpose of maintaining prices at a high level and restricting competition.

Demand Curve

A visual illustration that shows how the amount of a product consumers want to buy varies with changes in its price.

Public Entertainment

Activities or performances designed for the enjoyment of the public, often accessible to a wide audience and including events such as concerts, movies, and sporting events.

Dominant Strategy

A strategy that yields the best payoff for a player, regardless of what strategies other players use.