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.

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Definitions:

Pilgrimage Type

A classification of pilgrimage based on purpose or nature, such as spiritual, healing, or penance.

Radiating Chapels

Chapels that project outward from the apse or ambulatory of a church, often found in Gothic cathedrals.

Ambulatory

A covered walkway, often found around the apse of a Christian church, allowing for procession or space for visitors to walk around.

Pilgrims

Historical travelers who embarked on a journey for religious or spiritual reasons, often associated with the Pilgrims who settled in America in 1620.