Terry Has a Portfolio Comprised of Two Individual Securities

question 11

Multiple Choice

Terry has a portfolio comprised of two individual securities. Which one of the following computations that he might do is NOT a weighted average?

• A)correlation between the securities
• B)individual security expected return
• C)portfolio expected return
• D)portfolio variance
• E)portfolio beta

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Definitions:

Fixed Costs

Fixed charges that are unaffected by changes in production or sales volumes, including rental fees, wages, and insurance costs.

Variable Costs

Expenses that change in proportion to the activity or volume of a business operation, such as materials and labor.

Mass Customization

A production and marketing strategy that combines the flexibility and personalization of custom-made products with the low unit costs associated with mass production.

Supply-Chain Performance

A measure of how well a supply chain fulfills customer demands and manages resources efficiently.