You own a portfolio that has $42,000 invested in Stock A and $11,500 invested in Stock B. If the expected returns on these stocks are 18% and 6%, respectively, what come closest to the expected return on the portfolio? 12%

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter8: Risk And Rates Of Return
Section: Chapter Questions
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You own a portfolio that has $42,000 invested in Stock A and $11,500 invested in Stock B. If the expected returns on these stocks are 18% and 6%, respectively, what comes
closest to the expected return on the portfolio?
12%
15.4%
14.5%
12.2%
16.8%
Transcribed Image Text:You own a portfolio that has $42,000 invested in Stock A and $11,500 invested in Stock B. If the expected returns on these stocks are 18% and 6%, respectively, what comes closest to the expected return on the portfolio? 12% 15.4% 14.5% 12.2% 16.8%
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