If Your Portfolio Consists of 20% RJH (Expected Return 16

question 54

Multiple Choice

If your portfolio consists of 20% RJH (expected return 16% ) 30% PAV (expected return -2%) , and 50% MB (expected return 8%) , what is the expected rate of return on the portfolio?

• A) 7.8%
• B) 7.3%
• C) 6.6%
• D) 8.7%

---

Definitions:

Ceiling Price

A maximum legal price set by the government on certain goods or services to prevent prices from rising above a certain level.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price.

Black Market

An illegal trade of goods or services conducted outside the authorization of the official regulatory framework, often to avoid taxes or due to the illicit nature of the goods.

Price Floors

Minimum legally established prices below which a good or service cannot be sold, typically set by government to protect producers.