The Expected Return on a Portfolio Considers Which of the Following

question 50

Multiple Choice

The expected return on a portfolio considers which of the following factors?
I.percentage of the portfolio invested in each individual security
II.projected states of the economy
III.the performance of each security given various economic states
IV.probability of occurrence for each state of the economy

• A)I and III only
• B)II and IV only
• C)I, III, and IV only
• D)II, III, and IV only
• E)I, II, III, and IV

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Definitions:

Logical

Pertaining to or characterized by clear, systematic reasoning and thought.

Rational

Based on logic or reason; capable of coherent thought processes leading to sound decisions or judgments.

Continuum

A continuous sequence in which adjacent elements are not perceivably different from each other, though the extremes are quite distinct.

Intense Relationships

Relationships characterized by strong emotions, extreme closeness or dependency, and often turbulent interactions.