Multiple Choice
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) (15% + 13%) / 2 = 14.00% B) (0.45) <sup>2</sup>(15%) + (0.7) <sup>2</sup>(13%) = 9.41% C) [(0.45) <sup>2</sup>(15%) + (0.7) <sup>2</sup>(13%) ] * 2 = 18.82% D) 0.45(15%) + 0.7(13%) = 15.85%](https://d2lvgg3v3hfg70.cloudfront.net/TB4570/11ea7d99_d74f_06a5_b9bd_1fd70e0c9ab2_TB4570_00.jpg)
What is the expected return on the portfolio (round to two decimals) ?
A) (15% + 13%) / 2 = 14.00%
B) (0.45) 2(15%) + (0.7) 2(13%) = 9.41%
C) [(0.45) 2(15%) + (0.7) 2(13%) ] * 2 = 18.82%
D) 0.45(15%) + 0.7(13%) = 15.85%
Correct Answer:
Verified
Correct Answer:
Verified
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