Penny inherited a $200,000 portfolio of investments from her grandparents when she turned 21. The portfolio is comprised of treasury bills and stock in Ford and Harley Davidson as follows. Based on the current portfolio composition and the expected returns, what is the expected rate of return for Penny's portfolio? a. 7.8% b. 8.7% c. 7.0% d. 8.0% Treasury Bills Ford Harley Davidson Expected Return 4.5% 8.0% 12.0% $ $ $ $ Value 80,000.00 60,000.00 60,000.00

Penny inherited a $200,000 portfolio of investments from her grandparents when she turned 21. The portfolio is comprised of treasury bills and stock in Ford and Harley Davidson as follows. Based on the current portfolio composition and the expected returns, what is the expected rate of return for Penny's portfolio? a. 7.8% b. 8.7% c. 7.0% d. 8.0% Treasury Bills Ford Harley Davidson Expected Return 4.5% 8.0% 12.0% $ $ $ $ Value 80,000.00 60,000.00 60,000.00

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

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Penny inherited a $200,000 portfolio of investments from her grandparents when she turned 21. The portfolio is comprised of treasury bills
and stock in Ford and Harley Davidson as follows. Based on the current portfolio composition and the expected returns, what is the
expected rate of return for Penny's portfolio?
a. 7.8%
b. 8.7%
c. 7.0%
d. 8.0%
a..
b..
C.
d..
Treasury Bills
Ford
Harley Davidson
Expected Return
4.5%
8.0%
12.0%
$
A A A
$
$
$ Value
80,000.00
60,000.00
60,000.00

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