A portfolio is entirely invested into BBB stock,which is expected to return 16.4 percent,and ZI bonds,which are expected to return 8.6 percent.Stock BBB comprises 48 percent of the portfolio.What is the expected return on the portfolio?
A) 13.64 percent
B) 14.36 percent
C) 12.34 percent
D) 14.22 percent
E) 11.69 percent
Correct Answer:
Verified
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