You Have a 2-Stock Portfolio with an Expected Return of 10.6

question 39

Multiple Choice

You have a 2-stock portfolio with an expected return of 10.6 percent.Stock A has an expected return of 12 percent while Stock B is expected to return 8 percent.What is the portfolio weight of Stock A?

• A)76%
• B)72%
• C)61%
• D)65%
• E)68%

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Definitions:

Psychology

The scientific study of the mind and behavior, including aspects of conscious and unconscious experience as well as thought and emotion.

Mind and Behavior

The relationship and interaction between mental processes (thoughts, emotions) and actions or responses.

Scientific Study

The investigation and exploration of phenomena through methodical, empirical, and measurable evidence to establish facts and reach conclusions.

Humanism

A philosophical stance that emphasizes the value and agency of human beings, individually and collectively, and generally prefers critical thinking and evidence over established doctrine or faith.