Maria has a portfolio consisting of 7 shares of stock A (purchased for $70 per share) and 4 shares of stock B (purchased for $100 per share). She assumes the expected rates of returns after 1 year will be 0.02 for stock A and 0.15 for stock B, with variances of 0.04 and 0.18, respectively. The expected rate of return after 1 year for Mary's portfolio is

Hence, the expected rate of return after 1 year for Mary's portfolio is

Step-by-step explanation:

We have,

Purchase 7 shares of stock A  for $70 per share and 4 shares of stock B for $100 per share then The expected rate of return after 1 year for Mary's portfolio.

Weight invested in stock A is

Weight invested in stock B is

The expected value of the rate of return

step-by-step explanation:

the options are kind of confusing. i can tell you what i see going on here when i look at the graph.

the class and exam medians are closely related, and it looks like the low outlier on the exam did pull the median lower. [tex][/tex]