If You Invest 80% of Your Funds in GTE Stock

question 62

Multiple Choice

If you invest 80% of your funds in GTE stock with an expected rate of return of 11% and the remainder in International Paper stock with an expected return of 16%, the expected return on your portfolio is:

• A)11.8%.
• B)12%.
• C)12.6%.
• D)13.5%.
• E)None of the above

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Definitions:

Social Reproduction

The tendency of social classes to remain relatively stable as class status is passed down from one generation to the next.

Pierre Bourdieu

A French sociologist, anthropologist, and philosopher known for his theory of habitus and concepts of cultural capital, social capital, and symbolic violence.

Economic Relationships

Describes the connections between individuals or entities based on the production, distribution, and consumption of goods and services.

Karl Marx

A 19th-century philosopher, economist, and political theorist best known for his theories about capitalism and communism.