Which of the Following Is Not Required to Compute the Expected

question 35

Multiple Choice

Which of the following is not required to compute the expected return of a three-asset portfolio?

• A) the amount invested in each stock
• B) the correlation between the returns on each stock
• C) the expected return on each stock
• D) all of the above are required

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Definitions:

Actual Spending

The actual amount of money spent over a specific period, as opposed to budgeted or planned spending.

Budget

A financial plan that estimates income and expenses over a specified period of time.

Replenish Inventory

The process of adding stock to an inventory to maintain levels and ensure availability of products.

Average Price

The mean amount of money paid for a good or service, calculated by dividing the total spent by the number of units bought.