Q126
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.
all of the above must be known in order to determine the expected return of a portfolio
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
In order to determine the expected return of a portfolio, all of the following must be known except all of the above must be known in order to determine the expected return of a portfolio. The expected return for an investment portfolio is the weighted average of the expected return of each of its components.