What Is the Expected Return of an Equally Weighted Portfolio

question 61

Multiple Choice

What is the expected return of an equally weighted portfolio comprised of the following three stocks?

• A)16.33 percent
• B)18.60 percent
• C)19.67 percent
• D)20.48 percent
• E)21.33 percent

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Definitions:

Loftus and Coan

Researchers known for their work in the field of memory, particularly in how suggestions can create false memories.

Memory Storage

The process of retaining information in the brain over time.

Prefrontal Cortex

A region of the brain implicated in a variety of complex behaviors, including planning, decision making, and moderating social behavior.

Medial Temporal Lobe

A central nervous system structure, containing the hippocampus and surrounding cortical areas, that is involved in the storage and retrieval of experiences.