A Portfolio Is Made Up of Four Stocks The Expected Return of the Portfolio Is:
A) 16

question 179

Multiple Choice

A portfolio is made up of four stocks: $\begin{array}{lll} & \begin{array}{l}\text { Expected } \\\text { Return }\end{array} & \begin{array}{l}\text { Amount } \\\text { Invested }\end{array} \\\text { Stock A } & 16 \% & \$ 100,000 \\\text { Stock B } & 12 \% & \$ 200,000 \\\text { Stock C } & 18 \% & \$ 200,000 \\\text { Stock D } & 20 \% & \$ 100,000\end{array}$ The expected return of the portfolio is:

• A) 16.50%.
• B) 16.00%.
• C) 13.20%.
• D) None of the above

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Definitions:

Drive-Reduction Principle

A theory suggesting that psychological needs create an aroused state that drives an individual to engage in behaviors to reduce that tension or fulfill the need.

Motivation

The driving force behind actions, fueled by the desire to achieve a goal or satisfy a need.

Intensity

The measurable amount of a property, such as force, brightness, or a magnetic field, often described in terms of its power or degree.

Persistence

Refers to the continuing effort towards a goal, even when facing obstacles or challenges.