What Is the Expected Return of the Three-Stock Portfolio Described

question 13

Multiple Choice

What is the expected return of the three-stock portfolio described below? $\begin{array}{lcc}\text { Common Stock } & \text { Market Value } & \text { Expected Return } \\\hline \text { Xerox } & 125,000 & 8 \% \\\text { Yelcon } & 250,000 & 25 \% \\\text { Zwiebal } & 175,000 & 16 \%\end{array}$

• A) 18.27%
• B) 14.33%
• C) 16.33%
• D) 12.72%
• E) 16.45%