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Firlakuza [10]
3 years ago
10

The expected return on a portfolio: Group of answer choices can be greater than the expected return on the best performing secur

ity in the portfolio. can be less than the expected return on the worst performing security in the portfolio. is independent of the performance of the overall economy. is limited by the returns on the individual securities within the portfolio. is an arithmetic average of the returns of the individual securities when the weights of those securities are unequal.
Business
1 answer:
Slav-nsk [51]3 years ago
6 0

Answer:

is limited by the returns on the individual securities within the portfolio

Explanation:

Portfolio is simply defined as a list of securities showing how much is (or will be) invested in each of them.

The expected return on a portfolio is calculated as the weighted average of the expected returns on the securities that the portfolio involves. The weight of each security is the a Portion or a fraction of wealth invested in that security. Expected return on a portfolio of N securities is: rp= sum (Xr).

Expected Return is usually based on anticipated income and anticipated capital appreciation.

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