What Is the Expected Dollar Return on a Portfolio Which

question 99

Multiple Choice

What is the expected dollar return on a portfolio which consists of $9000 invested in an S&P 500 Index fund, $32500 in a technology fund, and $8,500 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)$13640
• B)$571
• C)$4500
• D)$5710

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Definitions:

Marginal Cost Curves

A graphical representation that shows how the cost of producing one more unit of a good or service varies as production increases.

Market Supply Curve

A graphical representation showing the total quantity of a good or service that suppliers are willing and able to sell at different prices.

Producer Surplus

The difference between the amount that producers are willing and able to sell a good for and the actual amount they receive in the market.

Economic Rent

Income derived from the possession of a unique resource, exceeding that which is needed to keep the resource in its current employment.