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:

Multinational Corporations

Corporations that conduct business across national borders.

Peripheral Nations

Countries that are not dominant in the global economy, often characterized by lower levels of industrialization, weaker institutions, and lower living standards compared to core nations.

Colonialism

System by which Western nations became wealthy by taking raw materials from other societies (the colonized) and reaping profits from products finished in the homeland.

Gini Coefficient

Measure of income distribution within a given population.