The Expected Return for a Portfolio Without Borrowing or Short

question 42

Multiple Choice

The expected return for a portfolio without borrowing or short selling

• A) should never be less than the expected return of the asset with lowest expected return.
• B) should never be greater than the expected return of the asset with highest expected return.
• C) has a limited range of expected returns.
• D) All of the above.

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Definitions:

NAFTA Treaty

The North American Free Trade Agreement, a treaty among the United States, Canada, and Mexico designed to remove tariff barriers between the three countries and facilitate the free flow of goods and services.

Trade Balance

The difference between a country's exports and imports over a certain period, indicating the net earnings from trade.

European Common Market

The European Common Market, also known as the European Single Market, is an integrated territory across the European Union that allows for the free movement of goods, services, capital, and people.

Hourly Wages

The rate of payment to employees for one hour of work.