The Expected Return on a Portfolio

question 107

Multiple Choice

The expected return on a portfolio:

• A)can be greater than the expected return on the best performing security in the portfolio.
• B)can be less than the expected return on the worst performing security in the portfolio.
• C)is independent of the performance of the overall economy.
• D)is limited by the returns on the individual securities within the portfolio.
• E)is an arithmetic average of the returns of the individual securities when the weights of those securities are unequal.

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