Your investment portfolio has 9,000 shares of Ball Hawks, which has an expected return of 9.60 percent and a price of $2.92 per share, and 6,000 shares of stock A, which has a price of $7.81 per share. If your portfolio has an expected return of 13.80 percent, then what is the expected return for stock A? 16.16% (plus or minus 4 bps) 8.42% (plus or minus 4 bps) 9.00% (plus or minus 4 bps) 4.20% (plus or minus 4 bps) None of the above is within 4 bps of the correct answer

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 25P
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Your investment portfolio has 9,000 shares of Ball Hawks, which has an expected return of 9.60 percent and a price of $2.92
per share, and 6,000 shares of stock A, which has a price of $7.81 per share. If your portfolio has an expected return of 13.80
percent, then what is the expected return for stock A?
16.16% (plus or minus 4 bps)
8.42% (plus or minus 4 bps)
9.00% (plus or minus 4 bps)
4.20% (plus or minus 4 bps)
None of the above is within 4 bps of the correct answer
Transcribed Image Text:Your investment portfolio has 9,000 shares of Ball Hawks, which has an expected return of 9.60 percent and a price of $2.92 per share, and 6,000 shares of stock A, which has a price of $7.81 per share. If your portfolio has an expected return of 13.80 percent, then what is the expected return for stock A? 16.16% (plus or minus 4 bps) 8.42% (plus or minus 4 bps) 9.00% (plus or minus 4 bps) 4.20% (plus or minus 4 bps) None of the above is within 4 bps of the correct answer
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