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garri49 [273]
3 years ago
13

Which of the following statements is FALSE?A) Without trading, the portfolio weights will decrease for the stocks in the portfol

io whose returns are above the overall portfolio return.B) The expected return of a portfolio is simply the weighted average of the expected returns of the investments within the portfolio.C) Portfolio weights add up to 1 so that they represent the way we have divided our money between the different individual investments in the portfolio.D) A portfolio weight is the fraction of the total investment in the portfolio held in an individual investment in the portfolio.
Business
1 answer:
Hoochie [10]3 years ago
8 0

Answer: The correct answer is "A) Without trading, the portfolio weights will decrease for the stocks in the portfolio whose returns are above the overall portfolio return.".

Explanation: The statement "A) Without trading, the portfolio weights will decrease for the stocks in the portfolio whose returns are above the overall portfolio return." is FALSE, because it is the opposite, that is Without trading, the portfolio weights will <u>increase</u> for the stocks in the portfolio whose returns are above the overall portfolio return.

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