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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