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Stock a Has an Expected Return of 10% Per Year

Question 14

Multiple Choice

Stock A has an expected return of 10% per year and stock B has an expected return of 20%.If 40% of a portfolio's funds are invested in stock A,and the rest in stock B,what is the expected return on the portfolio of stock A and stock B?


A) 10%
B) 20%
C) 16%
D) 14%

Correct Answer:

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