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Take a Test Oshayne Whittingham-Google Chrome secure | https://www Student/Playert est aspx?testild 17287357 Principles of Business Finanee Test: Exam 2 Goc Time Remaining: 02 4406 Submit Test This Question: 1 pt 41 or 41 (7 complete This Test: 41 pts possible what is the expected rate of return on a potholo 18% of which is invested in an S&P; 500 index fund, 65% in abechnology fnd and 17% in Treasury Bils. The expected rate of retum is 11% on the S&P; Index fund, 14% on the technology fund and 2% on the Treasury Bills OA, 833% B. 1025% , 11 42% 900% D.

Explanation / Answer

Answer :( C )11.42%

= Proabilityof A*Return of A+ Proabilityof B*Return of B + Proabilityof C*Return of C

= 0.18*11 + 0.65 * 14 + .17*2

= 11.42%

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