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:

Scientific Test

A methodical procedure carried out with the aim of verifying, falsifying, or establishing the validity of a hypothesis.

Telepathy

The supposed communication of thoughts or ideas through means other than the known senses, considered pseudoscience by mainstream science.

Extrasensory

Pertaining to perception or communication outside of the normal sensory processes, often referred to as ESP or sixth sense.

Perception

The process by which individuals interpret and organize sensory information to produce a meaningful experience of the world.