question archive To determine the expected return on a portfolio, the variance average expected return of the assets that comprise the portfolio is taken
To determine the expected return on a portfolio, the variance average expected return of the assets that comprise the portfolio is taken
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To determine the expected return on a portfolio, the variance average expected return of the assets that comprise the portfolio is taken.
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True.
Calculating Expected Return of a portfolio the investor needs to know the expected return of the securities in his pirtifolio as well as the overall weight of each security in the portfolio. i.e. the investor needs to add up the weight avarages of each security's anticipated rates of return.
