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Consider the Following Table with Information on the Weightings and Expected

Question 2

Multiple Choice

Consider the following table with information on the weightings and expected returns of three assets held by an FI. Consider the following table with information on the weightings and expected returns of three assets held by an FI. What is the expected return on the portfolio (round to two decimals) ? A) (0.15 * 12.35 + 0.55 * 10.25 + 0.30 * 15.75) / 3 = 4.07% B) (0.15 * 12.35 + 0.55 * 10.25 + 0.30 * 15.75) * 3 = 36.66% C) 0.15 * 12.35 + 0.55 * 10.25 + 0.30 * 15.75 = 12.22% D) (12.35 + 10.25 + 15.75) / 3 = 12.78% What is the expected return on the portfolio (round to two decimals) ?


A) (0.15 * 12.35 + 0.55 * 10.25 + 0.30 * 15.75) / 3 = 4.07%
B) (0.15 * 12.35 + 0.55 * 10.25 + 0.30 * 15.75) * 3 = 36.66%
C) 0.15 * 12.35 + 0.55 * 10.25 + 0.30 * 15.75 = 12.22%
D) (12.35 + 10.25 + 15.75) / 3 = 12.78%

Correct Answer:

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