Which of the Following Affect the Expected Rate of Return

question 26

Multiple Choice

Which of the following affect the expected rate of return for a portfolio?
I. weight of each security held in the portfolio
II. the probability of various economic states occurring
III. the variance of each individual security
IV. the expected rate of return of each security given each economic state

• A)I and IV only
• B)II and IV only
• C)II, III, and IV only
• D)I, II, and IV only
• E)I, II, III, and IV

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Definitions:

Coniferous Forest

Forested area generally found in areas with temperate climate and characterized by cone-bearing trees that are mostly evergreens with needle-shaped or scalelike leaves.

Spruce

A type of evergreen coniferous tree belonging to the genus Picea, known for its needle-like leaves and conical shape.

Savannah

A mixed landscape of grasslands and scattered trees, often found in tropical to subtropical regions, supporting a diverse array of flora and fauna.

Grasslands

Ecosystems dominated by grasses, often found in regions where there is not enough regular rainfall to support the growth of a forest, but more than that to form a desert.