If you invested in an equally weighted portfolio of stocks A and C,your portfolio return would be ____________ if economic growth was strong.
A)17.0%
B)22.5%
C)30.0%
D)30.5%
E)none of the above

Question

Quizplus · Accepted Answer

If economic growth is strong, the return for stock A is 15% and for stock C is 30%. An equally weighted portfolio means each stock contributes equally, so the portfolio return is (15% + 30%) / 2 = 22.5%.

If You Invested in an Equally Weighted Portfolio of Stocks