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If You Invest 80% of Your Funds in GTE Stock

Question 62

Multiple Choice

If you invest 80% of your funds in GTE stock with an expected rate of return of 11% and the remainder in International Paper stock with an expected return of 16%, the expected return on your portfolio is:


A) 11.8%.
B) 12%.
C) 12.6%.
D) 13.5%.
E) None of the above

Correct Answer:

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