Question: Question 14 (1 point) Consider a risky portfolio that consists of two stocks, A and B. Their weights are 30% and 70%, respectively. Stock A

Question 14 (1 point)

Consider a risky portfolio that consists of two stocks, A and B. Their weights are 30%

and 70%, respectively. Stock A has an expected return of 10% and a standard

deviation of 20%, while stock B has an expected return of 20% and a standard

deviation of 50%. If you invest $10,000 in a complete portfolio with an expected

return of 15%, what will be the dollar value of your position in stock A? The risk-free

return is 3%.

Previous Page Next Page Page 14 of 30 Question 14 (1 point) Consider a risky portfolio that consists of two stocks, A and B. Their weights are 30% and 70%, respectively. Stock A has an expected return of 10% and a standard deviation of 20%, while stock B has an expected return of 20% and a standard deviation of 50%. If you invest $10,000 in a complete portfolio with an expected return of 15%, what will be the dollar value of your position in stock A? The risk-free return is 3%. $1,578 $1,832 $2,118 $2,571 Page 14 of 30 Next Page Previous Page

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