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:
Verified
Q67: A portfolio contains four assets.Asset 1 has
Q68: The variance of Stock A is .015376,the
Q69: There is a 5 percent probability the
Q70: There is a 10 percent probability the
Q73: Stock A has a beta of .92
Q74: A portfolio contains two assets.The first asset
Q76: Which one of the following stocks,if any,is
Q77: BBG stock has a beta of .86
Q102: According to the CAPM,the expected return on
Q104: Why are some risks diversifiable and some
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents