# Question: You expect to invest your funds equally in four stocks

You expect to invest your funds equally in four stocks with the following expected returns:

Stock Expected Return

A........ 16%

B........ 14

C........ 10

D........ 8

At the end of the year, each stock had the following realized returns:

Stock Realized Return

A...... –6%

B...... 18

C...... 3

D...... –22

Compare the portfolio’s expected and realized returns.

Stock Expected Return

A........ 16%

B........ 14

C........ 10

D........ 8

At the end of the year, each stock had the following realized returns:

Stock Realized Return

A...... –6%

B...... 18

C...... 3

D...... –22

Compare the portfolio’s expected and realized returns.

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