Sally's Broker Told Her That the Expected Return from Her

question 8

Multiple Choice

Sally's broker told her that the expected return from her portfolio was 14.2%. If 40% of her securities have an expected return of 10.3 percent and 20% have an expected return of 12.8 percent, what is the expected return of the remaining portion of her portfolio?

• A)20.9%
• B)18.8%
• C)12.5%
• D)Cannot be determined

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Definitions:

Implicit

Something implied or understood though not directly expressed.

Explicit

Something stated clearly and in detail, leaving no room for confusion or doubt.

Metaphorical

Pertaining to or characterized by metaphor; using figures of speech that imply a comparison between unlike entities.

Literal

Pertains to the exact meaning of words or texts, without interpretation or exaggeration.