The Expected Return on a Portfolio Is Affected by the I)

question 40

Multiple Choice

The expected return on a portfolio is affected by the I) choice of securities held in the portfolio
II) return of each security given a particular economic state
III) portfolio weight assigned to each security
IV) probability of each economic state occurring

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

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Definitions:

Maximum Total Number

The highest possible aggregate count or quantity of a particular item or entity within a defined context.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, representing the benefits one misses out on when choosing one option over another.

Point B

A specific position or location on a graph or diagram, used often in economic models to denote a particular outcome or situation.

Point A

A specific position or location often referenced in economic models or graphs to illustrate a particular scenario or outcome.