Portfolio Return Year to date, Company Y had earned a 6.6 percent return. During the same time period, Company R earned 9.65 percent and Company C earned -1.85 percent. If you have a portfolio made up of 35 percent Y, 40 percent R, and 25 percent C, what is your portfolio return?

Multiple Choice

6.6325 percent

18.10 percent

14.40 percent

5.7075 percent

Consider the following correlations:

	IBM	Apple	Disney
IBM	1.0
Apple	0.2	1
Disney	0.3	0.7	1

Given this data, which of the following is most preferable if an investor can only select one pair of companies?

Multiple Choice

• It does not matter which two are selectedthere is no preference.

• Apple and IBM

• Disney and IBM

• Disney and Apple