What Is the Expected Return of an Equally Weighted Portfolio

question 22

Multiple Choice

What is the expected return of an equally weighted portfolio comprised of the following three stocks?

• A) 16.33 percent
• B) 18.60 percent
• C) 19.67 percent
• D) 20.48 percent
• E) 21.33 percent

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Definitions:

Kruskal-Wallis Test

A non-parametric method for testing whether samples originate from the same distribution, used when the ANOVA assumptions are not met.

Significance Level

The threshold at which the null hypothesis is rejected in statistical testing, often denoted as alpha (α).

Statistics

The science of collecting, analyzing, interpreting, and presenting data.

P-value

The probability measure indicating the likelihood of obtaining test results at least as extreme as the results actually observed, assuming that the null hypothesis is correct.