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%

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Definitions:

Sales Returns

Sales returns refer to the process of returning previously purchased goods by a customer to the seller, often resulting in a refund to the customer and a reduction in sales for the business.

Sales Returns

Transactions where customers return purchased goods, leading to a reversal of sales revenue and potentially reflecting on customer satisfaction or quality issues.

Sales Discounts

Reductions in the price of goods or services offered to customers to encourage prompt payment.

Net Sales

The amount of revenue generated by a company after accounting for returns, allowances, and discounts.