Suppose That You Hold a Two-Asset Portfolio Consisting of 100

question 15

Multiple Choice

Suppose that you hold a two-asset portfolio consisting of 100 shares of Clooney Brothers at $33 per share and 100 shares of Marx Brothers at $42 per share.Assume that you have computed the expected return on Clooney Brothers and Marx Brothers to be 20% and 12%,respectively.What is the expected return from the portfolio?

• A) 20.0%
• B) 16.0%
• C) 15.5%
• D) 12.0%
• E) 13.5%

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