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

question 16

Multiple Choice

What is the expected return of the three-stock portfolio described below? $\begin{array}{lcc}\text { Common Stock } & \text { Market Value } & \text { Expected Return } \\\hline\text { Lupko Inc. } & 50,000 & 13 \% \\\text { Mackey Co. } & 25,000 & 9 \% \\\text { Nippon Inc. } & 75,000 & 14 \%\end{array}$

• A) 12.04%
• B) 12.83%
• C) 13.07%
• D) 15.89%
• E) 17.91%