You Have Invested 40 Percent of Your Portfolio in an Investment

question 44

Multiple Choice

You have invested 40 percent of your portfolio in an investment with an expected return of 12 percent and 60 percent of your portfolio in an investment with an expected return of 20 percent. What is the expected return of your portfolio?

• A) 15.2%
• B) 16.0%
• C) 16.8%
• D) 17.6%

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Definitions:

Social Stratification

The hierarchical arrangement of individuals or groups in society based on wealth, power, prestige, or other status indicators.

Kingsley Davis

A prominent American sociologist and demographer known for his theories on population and societal development.

Universal

pertains to something that is applicable everywhere or in all cases; a concept, condition, or idea that is globally accepted.

Functionally Necessary

Pertains to elements or processes essential for the operation or survival of a system.