An Investor Owns a Portfolio Consisting of Two Mutual Funds

question 36

Multiple Choice

An investor owns a portfolio consisting of two mutual funds, A and B, with 35% invested in A. The following table lists the inputs for these funds. The expected return for the portfolio return is ________.

• A) 5.76%
• B) 7.65%
• C) 6.75%
• D) 12.45%

Calculate and understand the significance of net income within the context of financial reporting and business analysis.

Understand the concept of objective and subjective probability and how they are applied in decision making.

Distinguish between risk, uncertainty, and certainty in the context of decision making.

Recognize the importance of intuition, creativity, and information in leadership decision-making processes.

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Definitions:

Unpleasantness

The quality of being disagreeable or difficult to endure, often used to describe undesirable experiences or sensations.

Deserved

Warranted or merited due to actions or qualities.

Law Enforcement

A mechanism where society's members behave in a structured way to uphold the law through identifying, preventing, rehabilitating, or penalizing individuals who breach the regulations and norms that oversee that society.

Utilitarian

A philosophical principle that actions are right if they are useful or for the benefit of a majority.