Question

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
(D) all of the above are true.

Answer 1

Answer:

It can never be higher or lower than the weighted average expected return of individual assets

Option C :  It can never be above the highest individual return

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