When Shares with the Same Expected Return Are Combined into a Portfolio

question 91

Multiple Choice

When shares with the same expected return are combined into a portfolio:

• A)the expected return of the portfolio is less than the weighted average expected return of
• The shares.
• B)the expected return of the portfolio is greater than the weighted average expected return
• Of the shares.
• C)the expected return of the portfolio is equal to the weighted average expected return of
• The shares.
• D)there is no relationship between the expected return of the portfolio and the expected
• Return of the shares.
• E)None of the above.

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