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

Question:

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............ ..................–2

Compare the portfolio’s expected and realized returns.

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...

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