Question: Use the following two statements to answer this question: I. The expected return on a portfolio is the equally weighted average of the expected returns
Use the following two statements to answer this question:
I. The expected return on a portfolio is the equally weighted average of the expected returns on the individual securities in the portfolio.
II. The standard deviation of a portfolio reflects the weighted impact of the individual securities' standard deviations and the relationship among the co-movements of the returns on those individual securities.
Question 19 options:
| I is correct, II is incorrect | |
| I and II are correct | |
| I and II are incorrect | |
| I is incorrect, II is correct |
Use the following two statements to answer this question:
I. The expected return on a portfolio is the equally weighted average of the expected returns on the individual securities in the portfolio.
II. The standard deviation of a portfolio reflects the weighted impact of the individual securities' standard deviations and the relationship among the co-movements of the returns on those individual securities.
Question 19 options:
| I is correct, II is incorrect | |
| I and II are correct | |
| I and II are incorrect | |
| I is incorrect, II is correct |
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