You Are Considering Investing in a Portfolio Consisting of 40

question 75

Multiple Choice

You are considering investing in a portfolio consisting of 40% Melbourne Sports and 60% Buckstar.If the expected rate of return on Melbourne Sports is 16% and the expected return on Buckstar is 9%, what is the expected return on the portfolio?

• A)12.50%
• B)13.20%
• C)11.80%
• D)10.00%

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Definitions:

Enron

A former American energy company known for its massive accounting fraud leading to its bankruptcy.

WorldCom

A major telecommunications company that was involved in a large-scale accounting scandal, leading to its bankruptcy in 2002.

Double Jeopardy

A legal principle that prevents an individual from being tried twice for the same offense in the same jurisdiction, as protected under the Fifth Amendment of the U.S. Constitution.

Fourth Amendment

A part of the U.S. Constitution that protects against unreasonable searches and seizures by the government.