Which of the Following Is True About Calculating Expected Portfolio

question 203

Multiple Choice

Which of the following is true about calculating expected portfolio returns and variances?

• A) You need to calculate the weight of each asset relative to the total portfolio to calculate the portfolio return, but not to calculate the portfolio variance.
• B) Portfolio return can be calculated using the expected return and portfolio weight for each asset.
• C) The portfolio return is not needed to calculate the portfolio variance.
• D) The portfolio return and variance are independent of the possible states of nature.
• E) The portfolio variance is generally a weighted average of the variances of the individual assets in the portfolio.

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Definitions:

Intellectual Development

The progress of cognitive abilities such as thinking, reasoning, problem-solving, and information processing over the lifecycle.

Giftedness

Characteristics referring to individuals, particularly children, who exhibit exceptional levels of aptitude or competence in one or more domains.

Creativity

The use of imagination or original ideas to create something; inventiveness that is often applied in artistic endeavours and problem-solving.

Creativity

The ability to produce original ideas, approaches, or solutions to problems, characterized by innovation and imagination.