Which statement is true?
A)The expected rate of return on any portfolio must be positive.
B)The arithmetic average of the betas for each security held in a portfolio must equal 1.0.
C)The beta of any portfolio must be 1.0.
D)The weights of the securities held in any portfolio must equal 1.0.
E)The standard deviation of any portfolio must equal 1.0.

Question

Quizplus · Accepted Answer

The weights of the securities in a portfolio must sum to 1.0, as they represent the proportion of the total portfolio value allocated to each security.

Which Statement Is True