The Expected Return of a Portfolio of Risky Securities

question 66

Multiple Choice

The expected return of a portfolio of risky securities

• A) is a weighted average of the securities' returns.
• B) is the sum of the securities' returns.
• C) is the weighted sum of the securities' variances and covariances.
• D) is a weighted average of the securities' returns and the weighted sum of the securities' variances and covariances.
• E) None of the options are correct.

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Definitions:

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Representativeness Heuristic

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