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Portfolio expected return: 60% in A (E(R)=12%) and 40% in B (E(R)=8%). Calculated E(Rp) is:
A10.0%
B11.2%
C10.4%
D9.6%
Answer & Solution
Correct answer: C. 10.4%
1. Identify what the question asks: this concept maps to weightedreturn (§4.4.1).
2. Apply the framework or formula relevant to the topic.
3. Eliminate distractors and arrive at the correct option (C).
_Source: ICAI BoS CA Final Paper 2, Ch 6 "Portfolio Management"_
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