1. You own a portfolio that has $1,900 invested in Stock A and $2,700 invested in Stock B. If the expected returns on these stocks are 9 percent and 15 percent, respectively, what is the expected return on the portfolio?
10.57 percent
11.14 percent
11.96 percent
12.52 percent
13.07 percent
2. Which firm from each pair would you expect to have greater market risk? Explain your choce.
a) General steel or general food supplies
b) Exotic world tours agency or general cinemas.