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1 March, 05:18

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.

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  1. 1 March, 06:00
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    The correct answer is d) "The weights of the securities held in any portfolio must equal 1.0"

    Explanation:

    Each security in a portfolio is a percentage of the amount invested in the portfolio. This percentage called weight must be a general assumption and the weights must sum to 1.0, for all of the portfolio funds
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