The Returns for Two Assets,A and B,are 5% and 8 $3.25 \%$

question 29

Multiple Choice

The returns for two assets,A and B,are 5% and 8% respectively.If an investor holds 25% of her wealth in asset A,what is the continuously compounded return of a value-weighted portfolio comprising assets A and B?

• A) \(3.25 \%\)
• B) \(6.25 \%\)
• C) \(6.75 \%\)
• D)\(7.25 \%\)

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