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    Introduction to Corporate Finance Study Set 3
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    Exam 8: Risk, Return, and Portfolio Theory
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    You Are Contemplating Investing in Two Stocks ABC and XYZ
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You Are Contemplating Investing in Two Stocks ABC and XYZ

Question 16

Question 16

Multiple Choice

You are contemplating investing in two stocks ABC and XYZ that have an expected return of 12.0% and 9.0%, respectively.If your target expected return is 10.0%, what would be the weight in ABC?


A) 50%
B) 33%
C) 67%
D) 100%

Correct Answer:

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