What Is the Expected Return on a Portfolio Comprised of $3,000

question 17

Multiple Choice

What is the expected return on a portfolio comprised of $3,000 in stock K and $5,000 in stock L if the economy is normal?
$\begin{array}{llcc} \text { State of } & \text { Probability of } & \underline{\text { Returns if State Occurs }} \\\underline{ \text { Economy }} & \underline{\text { State of Economy }} & \underline{\text {Stock K\quad Stock L}} \\ \text {Boom } & 20\% &14\% \quad \quad 10\%\\ \text { Normal} & 80\%& 5\%\quad \quad6\%\\\end{array}$

• A)3.75%
• B)5.25%
• C)5.63%
• D)5.88%
• E)6.80%

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Definitions:

Thoughts of Suicide

Refers to contemplation or consideration of ending one's own life.

Risk for Suicide

Refers to the potential or likelihood that an individual will attempt to take their own life or engage in behavior with the intention of doing so.

Intentional Overdose

The deliberate act of consuming a toxic amount of substances, often with the intent to harm oneself.

No-Suicide Contract

An agreement between a patient and therapist in which the patient agrees not to harm themselves and to seek help if suicidal thoughts occur.