The Expected Return of a Two-Asset Portfolio Is Equal to the Product

question 64

True/False

The expected return of a two-asset portfolio is equal to the product of the weight assigned to the first asset and the expected return of the first asset plus the product of the weight assigned to the second asset and the expected return of the second asset.

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Definitions:

Selective Attention

The process by which a person focuses on one input or task while ignoring other stimuli.

Stimuli

External factors or events that provoke a response from biological organisms, typically leading to behavioral or physiological changes.

Concentrate

To focus one's attention or mental effort on a particular object or activity.

Pester Power

Refers to the influence children have over their parents' purchasing decisions through persistent requests or nagging.