10. Suppose you have invested 50% of your money in RBC’s stock and the rest in Air Canada’s stock. If you expect the return on RBC to be 6% in the next year, and the return on Air Canada to be 8%, what is the expected return for your portfolio?
a. 6.4%
b. 7%
c. 6%
d. 8%
Rest in Air Canada’s stock=100-50
=50%
Expected return=Respective return*Respective weight
=(0.5*6)+(0.5*8)
which is equal to
=7%
10. Suppose you have invested 50% of your money in RBC’s stock and the rest in...
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