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You own a portfolio that has 2,405 shares of stock A, which is priced at $18.70 per share and has an expected return of 11.99%,
You own a portfolio that has 2,405 shares of stock A, which is priced at $18.70 per share and has an expected return of 11.99%, and 3,859 shares of stock B, which is priced at $7.40 per share and has an expected return of 5.91%. The risk-free return is 2.77% and inflation is expected to be 2.14%. What is the expected real return for your portfolio?
A rate equal to or greater than 9.99% but less than 11.34% | ||
A rate less than 6.42% or a rate greater than 11.34% | ||
A rate equal to or greater than 6.42% but less than 7.00% | ||
A rate equal to or greater than 8.32% but less than 9.99% | ||
A rate equal to or greater than 7.00% but less than 8.32% |
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