Question: What determines the weights to be used in computing a portfolio rate of return? Select an answer that applies to both equal and unequal portfolio

What determines the weights to be used in computing a portfolio rate of return? Select an answer that applies to both equal and unequal portfolio allocations.

Multiple choice question.

100

percent divided by the number of securities held in the portfolio

Market value of each security expressed as a percentage of the total portfolio value

Market value of each security expressed as a percentage of the initial investment in that security

Market capitalization of each security divided by the total market capitalization of all securities

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