If You Invest 40% of Your Investment in GE with an Expected

question 116

Multiple Choice

If you invest 40% of your investment in GE with an expected rate of return of 10% and the remainder in IBM with an expected rate of return of 16%, the expected return on your portfolio is:

• A)12.4%
• B)13%
• C)13.6%
• D)14.5%

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Definitions:

Hourly Workers

Employees who are paid for each hour of work performed, as opposed to receiving a fixed salary.

Free Trade

An economic policy that allows goods and services to be bought and sold across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange.

Job Creation

The process by which new employment opportunities are generated, often considered a key indicator of economic health.

Protection

An alternative term for trade protection; policies that limit imports.