Question

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. Group of answer choices

Answer 1

Answer:

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.

Explanation: The expected return on a portfolio is the amount of revenue or income expected to be generated from the investment made on a portfolio( which is a group of financial assets like Stocks and non financial assets like Art

works etc).

THE EXPECTED RATE OF RETURN IS AFFECTED BY BOTH PERCENTAGE OF THE PORTFOLIO INVESTED IN EACH SECURITY,

THE PROJECTED OR FORCASTED STATE OF THE ECONOMY,

THE PERFORMANCE OF EACH SECURITY CONSIDERING DIFFERENT SITUATIONS,

THE PROBABILITY OF OCCURRENCE FOR EACH STATE OF THE ECONOMY ETC.