Which of the following statements regarding expected return of a portfolio is true?
A) It can be higher than the weighted average expected return of individual assets
B) It can be lower than the weighted average return of the individual assets
C) It can never be higher or lower than the weighted average expected return of individual assets
D) Expected return of a portfolio is impossible to calculate
Correct Answer:
Verified
Q1: Probability distributions:
A)are always discrete.
B)are always continuous.
C)can be
Q2: Security A and Security B have a
Q3: The expected value is the:
A) inverse of
Q4: Company specific risk is also known as:
A)market
Q5: The major difference between the correlation coefficient
Q8: Two stocks with perfect negative correlation will
Q9: In order to determine the expected return
Q10: Portfolio weights are found by:
A)dividing standard deviation
Q17: The relevant risk for a well-diversified portfolio
Q19: The bell-shaped curve, or normal distribution, is
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