Consider the Following Table with Information on the Weightings and Expected

question 2

Multiple Choice

Consider the following table with information on the weightings and expected returns of three assets held by an FI. What is the expected return on the portfolio (round to two decimals) ?

• A)(0.15 * 12.35 + 0.55 * 10.25 + 0.30 * 15.75) / 3 = 4.07%
• B)(0.15 * 12.35 + 0.55 * 10.25 + 0.30 * 15.75) * 3 = 36.66%
• C)0.15 * 12.35 + 0.55 * 10.25 + 0.30 * 15.75 = 12.22%
• D)(12.35 + 10.25 + 15.75) / 3 = 12.78%

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Definitions:

Company's Accounts

Financial records that detail the financial transactions, assets, liabilities, and equity of a company.

Accounts Payable

The amounts a company owes to suppliers or vendors for goods or services received but not yet paid for.

Short-Term Note

A debt instrument with a short maturity period, typically less than a year, used for business financing or temporary cash needs.

Interest Revenue

Income that a company earns from investments that pay interest, including savings accounts, bonds, or loans provided to others.