Question
You own a portfolio that has 2,920 shares of stock A, which is priced at $17.50 per share and has an expected return of 10.11%,
You own a portfolio that has 2,920 shares of stock A, which is priced at $17.50 per share and has an expected return of 10.11%, and 2,786 shares of stock B, which is priced at $9.00 per share and has an expected return of 5.18%. The risk-free return is 2.72% and inflation is expected to be 2.35%. What is the expected real return for your portfolio?
A rate less than 4.61% or a rate greater than 11.13%
A rate equal to or greater than 5.81% but less than 7.72%
A rate equal to or greater than 7.72% but less than 10.00%
A rate equal to or greater than 4.61% but less than 5.81%
A rate equal to or greater than 10.00% but less than 11.13%
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