Terry has a portfolio comprised of two individual securities. Which one of the following computations that he might do is NOT a weighted average?
A)correlation between the securities
B)individual security expected return
C)portfolio expected return
D)portfolio variance
E)portfolio beta

Question

Quizplus · Accepted Answer

Correlation between securities is not computed by taking a weighted average. Instead, it measures the degree of association or relationship between the returns of the two securities. The other computations listed (expected return, portfolio expected return, portfolio variance, and portfolio beta) all involve calculating a weighted average of some sort, whether it be of individual security returns or security weights within the portfolio.

Terry Has a Portfolio Comprised of Two Individual Securities