For a Portfolio Made Up of Three Stocks in Equal

question 137

True/False

For a portfolio made up of three stocks in equal proportion, if stock A's expected return is 12%, stock B's expected return is 16%, and stock C's expected return is 17%, the expected return of the portfolio should be 15.0%.

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Definitions:

Guarantee

A formal promise or assurance that certain conditions will be fulfilled, often relating to the quality or durability of an item or the outcome of a deal.

Indemnity

A contractual obligation of one party to compensate the loss incurred by the other party.

Guarantor

An individual or entity that promises to pay a borrower's debt if the borrower fails to fulfill their financial obligations.

Debtor

An individual or entity that owes a debt to another.