In order to determine the expected return of a portfolio,all of the following must be known,except:
A)probabilities of expected returns of individual assets
B)weight of each individual asset to total portfolio value
C)expected return of each individual asset
D)variance of return of each individual asset and correlation of returns between assets

Question

Quizplus · Accepted Answer

While knowing the probabilities of expected returns of individual assets can enhance the accuracy of calculating the expected return of a portfolio, it is not required. The expected return of each individual asset, the weight of each individual asset to total portfolio value, and the variance of return of each individual asset and correlation of returns between assets are all essential factors in determining the expected return of a portfolio.

In Order to Determine the Expected Return of a Portfolio,all