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An Investment Advisor Has Recommended a $50,000 Portfolio Containing Assets

Question 165

Multiple Choice

An investment advisor has recommended a $50,000 portfolio containing assets R, J, and K; $25,000 will be invested in asset R, with an expected annual return of 12 percent; $10,000 will be invested in asset J, with an expected annual return of 18 percent; and $15,000 will be invested in asset K, with an expected annual return of 8 percent. The expected annual return of this portfolio is


A) 12.67%.
B) 12.00%.
C) 10.00%.
D) unable to be determined from the information provided.

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