The Actual or Expected Return on a Portfolio Is Equal

question 90

Multiple Choice

The actual or expected return on a portfolio is equal to:

• A)the average of the returns on the stocks in the portfolio weighted by the dollar amounts invested in each stock
• B)the simple average of the returns on the stocks in the portfolio plus the risk-free rate of return.
• C)the sum of the products of the anticipated returns.
• D)the simple average of returns on the stocks in the portfolio less the risk-free rate of return.

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Definitions:

Units

Basic quantities or measurements used to express and compare physical quantities.

Sample Size

Refers to the number of observations or data points collected in a study or used in statistical analysis.

Symbols

Characters or marks that are used to represent objects, quantities, or relations in mathematical expressions, equations, or in general notation.

Sample

A subset of individuals or observations selected from the population under study, intended to represent the population in statistical analyses.