Q128
Which of the following is true regarding the expected return of a portfolio?
A.
It is a weighted average only for stock portfolios
B.
It can only be positive
C.
It can never be above the highest individual return
AnswerD.
All of the above are true
Answer: Option C
Solution
Answer: Option C
Solution:
It can never be above the highest individual return is true regarding 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.