The Expected Return of a Portfolio of Risky Securities

question 63

Multiple Choice

The expected return of a portfolio of risky securities

• A)is a weighted average of the securities' returns.
• B)is the sum of the securities' returns.
• C)is the weighted sum of the securities' variances and covariances.
• D)A and C.
• E)none of the above.

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Definitions:

Last Moment

A point in time immediately before a deadline or significant event, often associated with high stress or urgency.

Transferring

The act of moving risks or responsibilities from one party to another, often used as a risk management strategy.

Subtotaling Costs

The process of calculating intermediate total costs at various stages or for specific categories within a larger project or budget analysis.

Reconciliation

The process of ensuring that two sets of records (usually the balances of two accounts) are in agreement, often as a part of financial audits.