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Tyler Pashak
on Dec 02, 2024

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The actual or expected return on a portfolio is equal to:

A) the average of the returns on the stocks in the portfolio weighted by the dollar amounts invested in each stock
B) the simple average of the returns on the stocks in the portfolio plus the risk-free rate of return.
C) the sum of the products of the anticipated returns.
D) the simple average of returns on the stocks in the portfolio less the risk-free rate of return.

Expected Return

The predicted amount of profit or loss an investment generates based on historical performance or analyst forecasts.

Risk-Free Rate

The theoretical rate of return of an investment with zero risk, often represented by the yield of government securities.

  • Comprehend the foundations of portfolio theory and the linkage between risk and return.
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HS
Hamza SlaouiDec 08, 2024
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