The Expected Return on MSFT Next Year Is 12% with a Standard

question 83

Multiple Choice

The expected return on MSFT next year is 12% with a standard deviation of 20%. The expected return on AAPL next year is 24% with a standard deviation of 30%. If James makes equal investments in MSFT and AAPL, what is the expected return on his portfolio?

• A) 20%
• B) 16%
• C) 18%%
• D) 25%

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