Which of the Following Affect the Expected Rate of Return

question 26

Multiple Choice

Which of the following affect the expected rate of return for a portfolio?
I. weight of each security held in the portfolio
II. the probability of various economic states occurring
III. the variance of each individual security
IV. the expected rate of return of each security given each economic state

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

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Definitions:

High Blood Pressure

A medical condition where the force of the blood against artery walls is too high, often leading to health risks like heart disease.

High Cholesterol

A condition where there is too much cholesterol in the blood, increasing the risk of heart disease and stroke.

Obesity

A medical condition that involves excessive body fat accumulation, which poses a risk to health.

Physiological Factors

Aspects related to the functioning of organisms, including human internal, physical, and biochemical processes.