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

question 4

Multiple Choice

What is the expected return of the three-stock portfolio described below? $\begin{array}{lcc}\text { Common Stock } & \text { Market Value } & \text { Expected Return } \\\hline \text { Alko Inc. } & 25,000 & 38 \% \\\text { Belmont Co. } & 100,000 & 10 \% \\\text { Cardo Inc. } & 75,000 & 16 \%\end{array}$

• A) 21.33%
• B) 12.50%
• C) 32.00%
• D) 15.75%
• E) 16.80%

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