What Is the Expected Return for a Portfolio That Has

question 102

Multiple Choice

What is the expected return for a portfolio that has $800 invested in Stock A and $1,200 invested in Stock B,if the expected returns on Stock A and Stock B are 10% and 18%,respectively?

• A) 14.00%
• B) 14.80%
• C) 13.20%
• D) 12.60%

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Definitions:

BATNA

Best Alternative to a Negotiated Agreement; the best option one has if current negotiations fail.

Fixed-Pie Bias

The misconception in negotiations that the 'pie' or total available benefit is fixed, leading to competitive rather than cooperative strategies.

Conflicts of Interest

Situations where an individual's or organization's private interests conflict with their professional duties or responsibilities, leading to potential bias or unethical decisions.

Intraorganizational Bargaining

The negotiating process within an organization aimed at resolving differences or aligning strategies between various stakeholders, such as management teams, departments, or divisions.