The expected return for a portfolio without borrowing or short selling
A) should never be less than the expected return of the asset with lowest expected return.
B) should never be greater than the expected return of the asset with highest expected return.
C) has a limited range of expected returns.
D) All of the above.

Question

Quizplus · Accepted Answer

Without borrowing or short selling, a portfolio's expected return is constrained by the returns of the individual assets, meaning it cannot be lower than the lowest or higher than the highest expected return of the assets in the portfolio. Thus, all statements are correct.

The Expected Return for a Portfolio Without Borrowing or Short