The portfolio expected return considers which of the following factors? I.the amount of money currently invested in each individual security.
II)various levels of economic activity.
III)the performance of each share given various economic scenarios.
IV)the probability of various states of the economy.
A)I and III only.
B)II and IV only.
C)I, III, and IV only.
D)II, III, and IV only.
E)I, II, III, and IV.

Question

Quizplus · Accepted Answer

The portfolio expected return takes into account all these factors: the amount of money invested in each security (I), the impact of different levels of economic activity (II), how each share is expected to perform under different economic scenarios (III), and the likelihood of various economic conditions occurring (IV). These elements are crucial for accurately forecasting the expected return of a portfolio.

The Portfolio Expected Return Considers Which of the Following Factors