Your investment portfolio has 9,000 shares of Ball Hawks, which has an expected return of 7.00 percent and a price of $3.09 per share, and 6,000 shares of stock A, which has a price of $7.84 per share. If your portfolio has an expected return of 12.90 percent, then what is the expected return for stock A? 9.40% (plus or minus 4 bps) 16.39% (plus or minus 4 bps) 5.90% (plus or minus 4 bps) 8.76% (plus or minus 4 bps) None of the above is within 4 bps of the correct answer

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
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Your investment portfolio has 9,000 shares of Ball Hawks, which has an expected return of 7.00 percent and a price of $3.09 per share, and 6,000 shares of
stock A, which has a price of $7.84 per share. If your portfolio has an expected return of 12.90 percent, then what is the expected return for stock A?
9.40% (plus or minus 4 bps)
16.39% (plus or minus 4 bps)
5.90% (plus or minus 4 bps)
8.76% (plus or minus 4 bps)
None of the above is within 4 bps of the correct answer
Transcribed Image Text:Your investment portfolio has 9,000 shares of Ball Hawks, which has an expected return of 7.00 percent and a price of $3.09 per share, and 6,000 shares of stock A, which has a price of $7.84 per share. If your portfolio has an expected return of 12.90 percent, then what is the expected return for stock A? 9.40% (plus or minus 4 bps) 16.39% (plus or minus 4 bps) 5.90% (plus or minus 4 bps) 8.76% (plus or minus 4 bps) None of the above is within 4 bps of the correct answer
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