An investor owns stock in two firms, A and B: 250 shares of A, with a current

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An investor owns stock in two firms, A and B:

250 shares of A, with a current market price of $28/share for a total $7,000 investment value, with an expected return this year of 7.5%

400 shares of B, with a current market price of $52.50/share for a total investment value of $21,000, and an expected return this year of 14%

What is the investor’s overall (weighted average) expected return on the two stock portfolio?

Related Book For answer-question

Managerial Economics Foundations of Business Analysis and Strategy

ISBN: 978-0078021718

11th edition

Authors: Christopher Thomas, S. Charles Maurice

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Posted Date: May 27, 2023 07:28 AM

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An investor owns stock in two firms, A and B: 250 shares of A, with a current

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Managerial Economics Foundations of Business Analysis and Strategy

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