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%

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Definitions:

Glossopharyngeal

The ninth cranial nerve, which is involved in tasting, swallowing, and the gag reflex, as well as controlling some muscles and salivary glands.

Trigeminal

Pertaining to the trigeminal nerve, which is the fifth cranial nerve responsible for sensation in the face and motor functions such as biting and chewing.

Cranial Nerve

One of twelve pairs of nerves that originate in the brain and primarily serve the head and neck (except the vagus nerve which extends to the abdomen).

Optic Nerve

A cranial nerve that transmits visual information from the retina to the brain.