What Is the Expected Rate of Return on a Portfolio

question 42

Multiple Choice

What is the expected rate of return on a portfolio 18% of which is invested in an S&P 500 Index fund, 65% in a technology fund, and 17% in Treasury notes.The expected rate of return is 11% on the S&P Index fund, 14% on the technology fund and 2% on the Treasury notes.

• A)10.25%
• B)8.33%
• C)11.42%
• D)9.00%

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Definitions:

Activity Cost Pools

A grouping of all costs related to a particular business activity, used in activity-based costing to allocate costs more accurately.

Machine-Hours

A measurement of the amount of time machines are used in production during a specific period.

Batches

Batches refer to a specific quantity of material or products processed or produced at one time in a manufacturing or production process.

Activity Rates

Ratios used to allocate costs to products or services based on the amount of activity consumed by each.