The Expected Return on a Portfolio

question 95

Multiple Choice

The expected return on a portfolio:

• A) Can be greater than the expected return on the best performing security in the portfolio.
• B) Can be less than the expected return on the worst performing security in the portfolio.
• C) Is independent of the performance of the overall economy.
• D) Is limited by the returns on the individual securities within the portfolio.
• E) Is an arithmetic average of the returns of the individual securities when the weights of those securities are unequal.

---

Definitions:

Pectoralis Major

The pectoralis major is a large chest muscle that functions to flex, adduct, and internally rotate the humerus at the shoulder joint.

Serratus Anterior

A muscle on the side of the chest that assists in the upward movement of the arms and stabilizes the scapula.

Biceps Femoris

A thigh muscle belonging to the hamstrings group, responsible for bending the knee and extending the thigh.

Deltoid Muscle

The muscle that caps the shoulder, involved in arm rotation and preventing dislocation of the shoulder joint.