IIf an Investor Invests 50% in IBM Which Returned 20%;

question 17

Multiple Choice

IIf an investor invests 50% in IBM which returned 20%; 30% in Texaco which returned –10%; and 20% in Motorola which returned 5%, what is the portfolio rate of return?

• A) 14%
• B) 8%
• C) 8.45%
• D) 9.11%

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Definitions:

Partner Withdrawal

The process or act of a partner exiting from a partnership, impacting the partnership's operation and financial status.

Partnership

A legitimate business arrangement where two or more participants collaborate in running the enterprise and splitting the income.

Fiduciary Duties

Obligations that require a party, typically in a trustee or representative role, to act in the best interests of another party.

Undertake Business

The act of engaging in commercial or professional activities, usually with the objective of generating profit.