weighted portfolio
expected return on portfolio
coefficient of portfolio
expected assets
Answer is Right!
Answer is Wrong!
The correct answer is: B. expected return on portfolio
The expected return on a portfolio is the weighted average of the expected returns of the individual assets in the portfolio. The weights are determined by the proportion of each asset’s value in the portfolio.
For example, if a portfolio consists of two assets, A and B, with expected returns of 10% and 15%, respectively, and the weights of A and B in the portfolio are 50% and 50%, respectively, then the expected return
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on the portfolio is:
$E(r_p) = 0.5(0.10) + 0.5(0.15) = 12.5\%$
The expected return on a portfolio is a measure of the average return that investors can expect to earn from the portfolio over time. It is an important factor to consider when making investment decisions.
Option A, “weighted portfolio,” is incorrect because it refers to the portfolio itself, not the expected return on the portfolio.
Option C, “coefficient of portfolio,” is incorrect because it is not a term that is used in finance.
Option D, “expected assets,” is incorrect because it refers to the expected value of the assets in the portfolio, not the expected return on the portfolio.