Consider the Following Table with Information on the Weightings and Expected

question 17

Multiple Choice

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

• A)(0.35 + 12.35) - (0.65 + 10.25) = 1.80%
• B)(0.35 + 0.65) * (12.35 + 10.25) = 22.60%
• C)(12.35 + 10.25) / 2 = 11.30%
• D)0.35 * 12.35 + 0.65 * 10.25 = 10.99%

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Definitions:

Converted

The process of changing or causing something to change from one form to another.

Remaining to Spend

The amount of budget or funds left available to use or allocate.

Cost Of Goods

The direct expenses associated with producing goods, including materials and labor costs, but excluding indirect expenses like distribution and sales force costs.

Operating Expenses

Costs associated with the day-to-day operations of a business, including rent, utilities, and payroll.