Electric Gene - 11.80% . 13.20% - 10.00%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:You are considering investing in a portfolio consisting of 40% Electric General and 60% Buckstar. If the expected rate of return
on Electric General is 16% and the expected return on Buckstar is 9%, what is the expected return on the portfolio?
a. 11.80%
b. 13.20%
c. 10.00%
d. 12.50%
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