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    Financial Management Principles and Applications Study Set 2
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    Exam 8: Risk and Return-Capital Market Theory
  5. Question
    You Are Considering Investing in a Portfolio Consisting of 40
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You Are Considering Investing in a Portfolio Consisting of 40

Question 2

Question 2

Multiple Choice

You are considering investing in a portfolio consisting of 40% Electric General and 60% Buckstar. If the expected rate of return on Electric General is 16% and the expected return on Buckstar is 9%, what is the expected return on the portfolio?


A) 12.50%
B) 13.20%
C) 11.80%
D) 10.00%

Correct Answer:

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