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Use the Information to Answer the Following Question(s)

Question 24

Multiple Choice

Use the information to answer the following question(s) .
A U.S. investor is considering a portfolio consisting of 60% invested in the U.S. equity index fund and 40% invested in the British equity index fund. The expected returns for the funds are 10% for the U.S. and 8% for the British, standard deviations of 20% for the U.S. and 18% for the British, and a correlation coefficient of 0.15 between the U.S. and British equity funds.
-Refer to Instruction 17.2. What is the expected return of the proposed portfolio?


A) 9.2%
B) 9.0%
C) 19.2%
D) 19%

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