Consider the Following Portfolio of Assets: What Is the Expected

question 34

Multiple Choice

Consider the following portfolio of assets: What is the expected return on the portfolio (round to two decimals) ?

• A)(15% + 13%) / 2 = 14.00%
• B)(0.45)²(15%) + (0.7)²(13%) = 9.41%
• C)[(0.45)²(15%) + (0.7)²(13%)] * 2 = 18.82%
• D)0.45(15%) + 0.7(13%) = 15.85%

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Definitions:

Intervals

A range between two numbers or points on a line, often used in mathematics and statistics to denote a span of values.

Equally Wide

Referring to intervals or bins in a histogram or distribution that have the same width, ensuring uniformity in data representation.

Histogram

A graphical representation of data using bars of different heights to show the frequency of values in a dataset.

Intervals

Ranges or spans of values within which a variable or an observation can lie, often used in the context of measurement scales or confidence estimates.