Explain why investors who have diversified their portfolios will determine the price and, consequently, the expected return

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Explain why investors who have diversified their portfolios will determine the price and, consequently, the expected return on an asset.

Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...
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Fundamentals of corporate finance

ISBN: 978-0470876442

2nd Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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