Consider the Following Table with Information on the Weightings and Expected

question 47

Multiple Choice

Consider the following table with information on the weightings and expected returns of two assets held by an FI. $$\begin{array} { | c | c | c | } \hline \text { Loan } i & \text { Weight } i & \text { Expected return } i \\\hline 1 & 0.35 & 12.35 \% \\\hline 2 & 0.65 & 10.25 \% \\\hline\end{array}$$ What is the expected return on the portfolio (round to two decimals) ?

• A)(0.35 + 12.35) - (0.65 + 10.25) = 1.80%
• B)(0.35 + 0.65) * (12.35 + 10.25) = 22.60%
• C)(12.35 + 10.25) / 2 = 11.30%
• D)0.35 * 12.35 + 0.65 * 10.25 = 10.99%

---

Definitions:

Google Fiber

A high-speed broadband Internet and cable television service provided by Google, aiming to deliver faster internet connectivity to users.

Kansas City

A city located in the Midwestern United States, known for its significant contributions to jazz music, cuisine, and sports.

Largest-Volume Application

The application or software that has the highest number of users or volume of data processed, typically within a specific market or domain.

Voice Communication

The transmission of spoken information through electronic devices, enabling verbal interaction between people over distances.