Multiple Choice
Nervous Norman holds 70% of his assets in cash, earning 0%, and 30% of his assets in an insured savings account, earning 2%. The expected return on his portfolio:
A) is 0%.
B) is 0.6%
C) is 1%.
D) is 2%.
E) cannot be determined without knowing what the dollar value of his assets is.
Correct Answer:
Verified
Correct Answer:
Verified
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