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A Portfolio Is Invested 60 Percent in One Stock and 40

Question 9

Multiple Choice

A portfolio is invested 60 percent in one stock and 40 percent in one bond.The bond has an expected return of 7.25 percent.What is the expected rate of return on the stock if the portfolio expected return is 10.40 percent?


A) 6.45%
B) 9.60%
C) 12.50%
D) 14.22%
E) 10.68%

Correct Answer:

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