Respuesta :
The expected return of the portfolio is equal to the weighted average expected return of the stocks
The stocks with the same expected return a combined into a portfolio result in the expected return of the portfolio equal to the average expected return of the stocks.
What is Stocks?
In economy or finance when a company or a corporation consist shares under the ownership of company are called stocks.
It means it is fractional ownership of a corporation and the buyer of the stock.
What is a portfolio?
Portfolio is a collection of different type of Financial investments like commodities care stocks phone cash equivalents in the stocks in different exchanges and traded funds.
What is average expected return?
The amount of profit or loss which was anticipated by the investor on the investment is called average expected return.
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