The expected return on a portfolio considers which of the following factors?
I.percentage of the portfolio invested in each individual security
II.projected states of the economy
III.the performance of each security given various economic states
IV.probability of occurrence for each state of the economy
A)I and III only
B)II and IV only
C)I, III, and IV only
D)II, III, and IV only
E)I, II, III, and IV

Question

Quizplus · Accepted Answer

The expected return on a portfolio considers the percentage of the portfolio invested in each individual security (I), projected states of the economy (II), the performance of each security given various economic states (III), and the probability of occurrence for each state of the economy (IV). These factors are all integral to calculating the expected return, as they help in assessing how different investments might perform under various economic conditions and the likelihood of those conditions occurring.

The Expected Return on a Portfolio Considers Which of the Following