The Expected Return on a Portfolio

question 48

Multiple Choice

The expected return on a portfolio

• A)can be greater than the expected return on the best performing security in the portfolio.
• B)can be less than the expected return on the worst performing security in the portfolio.
• C)is independent of the performance of the overall economy.
• D)is limited by the returns on the individual securities within the portfolio.
• E)is an arithmetic average of the returns of the individual securities when the weights of those securities are unequal.

Understand the implications of research findings for practical interventions in societal issues.

Understand the fundamentals of statistical tests and the interpretation of probability values.

Recognize the role and limitations of different research methods, including case studies, experiments, and correlation studies.

Understand the concept of generalizability in psychological research.

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Definitions:

Wealth

A measure of the value of all the assets of worth owned by a person, community, company, or country.

Land

The solid surface of the earth that is not covered by water, or the property and natural resources found on it, often considered in terms of ownership and use.

Voltaire

An influential French Enlightenment writer, historian, and philosopher known for his wit, his criticism of Christianity, and his advocacy of freedom of speech and religion.

Candide

A satirical novella by Voltaire, first published in 1759, which criticizes the optimism promoted by the philosophies of the Enlightenment, using the naive protagonist, Candide, to explore themes of freedom, happiness, and human suffering.