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Suppose you are investing in the following common stocks having expected returns as follows: AMOUNT EXPECTED COMMON STOCK INVESTED RETURN One 8,000 0.14 TWO 11,000

Suppose you are investing in the following common stocks having expected returns as follows:

AMOUNT EXPECTED

COMMON STOCK INVESTED RETURN

One 8,000 0.14

TWO 11,000 0.16

Three 9,000 0.17

Four 7,000 0.13

Five 5,000 0.20

Six 13,000 0.15

Seven 9,000 0.18

a. What is the expected return (percentage) on your portfolio?

b. What would be the expected return if you quadrupled your investment in Fifth stock while leaving everything else the same?

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Question 01: Suppose you are investing in the following common stocks having expected returns as follows: AMOUNT EXPECTED COMMON STOCK INVESTED RETURN One 8,000 0.14 TWO 11,000 0.16 Three 9,000 0.17 Four 7,000 0.13 Five 5,000 0.20 Six 13,000 0.15 Seven 9,000 0.18 N a. What is the expected return (percentage) on your portfolio? b. What would be the expected return if you quadrupled your investment in Fifth stock while leaving everything else the same? Castinn 02 Marks: 10

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