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A Portfolio Is Entirely Invested into Buzz's Bauxite Boring Equity,which

Question 8

Multiple Choice

A portfolio is entirely invested into Buzz's Bauxite Boring equity,which is expected to return 16%,and Zum's Inc. bonds,which are expected to return 8%. 60% of the funds are invested in Buzz's and the rest in Zum's. What is the expected return on the portfolio?


A) 6.4%
B) 9.6%
C) 12.8%
D) 24.2%
E) Need additional information

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