True or False: the Expected Return of a Two-Asset Portfolio

question 78

True/False

True or False: The expected return of a two-asset portfolio is equal to the product of the weight
assigned to the first asset and the expected return of the first asset plus the product of the weight
assigned to the second asset and the expected return of the second asset.

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Definitions:

Population Distribution

A term that describes how the values of a variable are distributed across an entire population.

Sampling Distribution

The probability distribution of a given statistic based on a random sample.

Normal Distribution

A bell-shaped curve distribution that is symmetrical around the mean, where the bulk of the values lie near the center and it tails off towards the extremes.

Central Limit Theorem

The Central Limit Theorem is a statistical theory that states that the sampling distribution of the sample mean approaches a normal distribution, regardless of the population's distribution, given a large enough sample size.