The Expected Return of a Portfolio of Risky Securities

question 7

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) is a weighted average of the securities' returns and the weighted sum of the securities' variances and
• E) None of the options are correct.

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Definitions:

Considerate Behavior

Actions that show thoughtfulness towards others' feelings and needs, often characterized by kindness and respect.

Inflexible

Refers to the inability to change or adapt to new conditions or situations.

Business Meeting

A formal gathering of individuals within an organization to discuss and make decisions on business-related matters.

Body Language

Non-verbal communication through gestures, expressions, and postures, which can convey feelings and intentions.