What Is the Expected Return of an Equally Weighted Portfolio

question 28

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:

Personal Skill

An individual's ability or expertise in a specific area that contributes to their effectiveness in personal or professional settings.

Delegatee's Performance

The execution of delegated tasks or duties by the appointed individual or entity.

Special Trust

A fiduciary relationship or arrangement in which one party holds property or assets for the benefit of another party, marked by a particular purpose or objective.

Intended Beneficiary

A person or entity that is specifically designated to benefit from a contract, trust, or estate, even though they are not a direct party to the agreement.