Question: Q3. The expected return on a portfolio: I Can never exceed the expected return of the best performing security in the portfolio. II Must be

Q3. The expected return on a portfolio:

I Can never exceed the expected return of the best performing security in the portfolio.

II Must be equal to or greater than the expected return of the worst performing security in the portfolio.

III Is independent of the performance of the economy.

IV Can be determined by multiplying the weight of each asset held within the portfolio by each asset's expected return.

A I and II are correct.

B I, II, III and IV are correct.

C I, II and IV are correct

D III is correct

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