QUESTION 10 You are considering an investment in either individual stocks or a portfolio of stocks. The two stocks you are researching. Stock A and
QUESTION 10
You are considering an investment in either individual stocks or a portfolio of stocks. The two stocks you are researching. Stock A and Stock B, have the following historical returns:
Year A B
2014. -21% -6.0%
2015 38.0% 17.0%
2016 20% -13.0%
2017 -9.0% 40.0%
2018 20.0% 11.0%
Suppose you had held a portfolio consisting of 20% of stock A and 80% of stock B.
What would have been the average return on the portfolio during this period?
| a. | 10% | |
| b. | 12.5% | |
| c. | 12% | |
| d. | 11.5% |
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Authors: James Van Horne, John Wachowicz
13th Revised Edition
978-0273713630, 273713639
