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For the next two questions (37-38), ASSUME that the one year returns for COMPANY A are still {25%, -15%, 120%, -30%, -45%}. Assume also that
For the next two questions (37-38), ASSUME that the one year returns for COMPANY A are still {25%, -15%, 120%, -30%, -45%}. Assume also that you acquired shares in COMPANY B, which has had annual returns over the same period, of:
{27; 35%; -10%; 10%; -15%}.
Assume that you own a portfolio comprised of 45% COMPANY A and 55% COMPANY B.
What return do you expect to earn next year on this portfolio?
Multiple Choice 10.12% 15.25%
9.74%
13.58%
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