What term is used for the weighted average of the expected returns on the constituent investments?
A) Mean return
B) Sum of the expected returns
C) Portfolio expected return
D) Market expected return

Question

Quizplus · Accepted Answer

The term used for the weighted average of the expected returns on the constituent investments is the portfolio expected return. This takes into account the expected returns of each individual investment within the portfolio and their respective weights. It is a key measure used to determine the overall performance and potential of a portfolio. A and B are incorrect as they refer to either the average or total expected returns, which do not take into account the weights of each investment within the portfolio. D refers to the expected return of the overall market, which is not specific to the individual portfolio.

What Term Is Used for the Weighted Average of the Expected