Which of the following is not required to compute the expected return of a three-asset portfolio?
A) the amount invested in each stock
B) the correlation between the returns on each stock
C) the expected return on each stock
D) all of the above are required

Question

Quizplus · Accepted Answer

The expected return of a portfolio is computed using the weights (amounts invested) and the expected returns of the individual assets. The correlation between the returns on each stock is not required for calculating expected return, but it is essential for assessing portfolio risk.

Which of the Following Is Not Required to Compute the Expected