You buy 50 stocks of Company A, 30 of Company B, and 20 of Company C. The annual returns of these companies are 8%, 12%, and 10% respectively. The average return for one year is the closest to ________.
A) 9.1%
B) 9.6%
C) 10.0%
D) 10.5%

Question

Quizplus · Accepted Answer

First, we need to calculate the weighted average return. 
Weighted average return = (number of stocks * annual return) / total number of stocks 
For Company A: (50 * 8%) / 100 = 4% 
For Company B: (30 * 12%) / 100 = 3.6% 
For Company C: (20 * 10%) / 100 = 2% 
Total weighted return = 4% + 3.6% + 2% = 9.6% 
Therefore, the closest answer is B) 9.6%.

You Buy 50 Stocks of Company A, 30 of Company