In Order to Determine the Expected Return of a Portfolio,all

question 16

Multiple Choice

In order to determine the expected return of a portfolio,all of the following must be known,except:

• A)probabilities of expected returns of individual assets
• B)weight of each individual asset to total portfolio value
• C)expected return of each individual asset
• D)variance of return of each individual asset and correlation of returns between assets

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Definitions:

Flexible Budget

A budget that molds itself to fit changes in the volume or intensity of activity.

Other Expenses

Costs not directly related to the production or selling of goods and services, such as interest expenses and loss from foreign exchange.

Containers Refurbished

Used containers that have been restored to good condition and functionality for reuse.

Activity Variance

A measure of the difference between the actual level of activity and the planned level of activity.