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:

General Tolerance

The allowable amount of variation in any dimension within a drawing or part that is not specifically called out by a dimension or note.

Basic Dimensions

Theoretically exact measurements specified on drawings, from which tolerances are applied to define allowable variation.

Geometric Characteristic

Refers to any feature of a part or assembly that can be defined in terms of geometry, such as size, shape, orientation, or position.

Position

Refers to the specific location or orientation of an object or component relative to a base or reference point.