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:

Characteristics

Attributes, traits, or features that describe and distinguish an individual, object, or concept.

Diversity Climate

The organizational atmosphere and employees' perceptions regarding the extent to which an organization values diversity and inclusivity.

Business-unit Performance

The measurement of success, output, or efficiency of a distinct segment of an organization, often treated as a separate entity.

Detrimental Effects

Negative impacts or consequences that harm or disadvantage an individual, group, or environment.