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A mutual fund is an investment vehicle that allows investors, by pooling their money together, to own a diversified portfolio of stocks with a relatively
A mutual fund is an investment vehicle that allows investors, by pooling their money together,
to own a diversified portfolio of stocks with a relatively small investment equivalent owning a
fractional number of shares of a large number of companies Suppose you want to keep of
your portfolio in a particular mutual fund which has an expected return of There are also
two companies youve done investment research on whose stocks youd like to invest in
separately. Stock A has an expected return of while stock B has an expected return of
If youd like your whole portfolio including your ownership of the mutual fund to have an
expected return of what percentage of your total portfolio should you invest in stocks A
and B respectively?
A Invest of your portfolio value in Stock A and in Stock B
B Invest of your portfolio value in Stock A and in Stock B
C Invest of your portfolio value in Stock A and in Stock B
D Invest of your portfolio value in Stock A and in Stock B
E Invest of your portfolio value in Stock A and in Stock B
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