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Consider the Following Portfolio of Assets: What Is the Expected

Question 60

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Consider the following portfolio of assets: Consider the following portfolio of assets:   What is the expected return on the portfolio (round to two decimals) ? A) 0.3(13%)  + 0.7(11%)  = 11.60% B) (13% + 11%)  / 2 = 12.00% C) (0.3) <sup>2</sup>(13%)  + (0.7) <sup>2</sup>(11%)  = 6.56% D) [(0.3) <sup>2</sup>(13%)  + (0.7) <sup>2</sup>(11%) ] * 2 = 13.12% What is the expected return on the portfolio (round to two decimals) ?


A) 0.3(13%) + 0.7(11%) = 11.60%
B) (13% + 11%) / 2 = 12.00%
C) (0.3) 2(13%) + (0.7) 2(11%) = 6.56%
D) [(0.3) 2(13%) + (0.7) 2(11%) ] * 2 = 13.12%

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