You Have a Portfolio Consisting Solely of Stock a and Stock

question 19

Multiple Choice

You have a portfolio consisting solely of stock A and stock B. The portfolio has an expected return of 10.2%. Stock A has an expected return of 12% while stock B is expected to return 7%. What is the portfolio weight of stock A?

• A) 46%
• B) 54%
• C) 58%
• D) 64%
• E) 70%

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Definitions:

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