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A Portfolio Is Invested 54 Percent in Stock K and 46

Question 51

Multiple Choice

A portfolio is invested 54 percent in Stock K and 46 percent in Bond L.The bond has an expected return of 6.85 percent.What is the expected rate of return on Stock K if the portfolio expected return is 10.25 percent?


A) 13.45%
B) 15.60%
C) 13.15%
D) 14.22%
E) 10.68%

Correct Answer:

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