Busıness Fınance I Deneme Sınavı Sorusu #1138821

Which of the following is not considered when adjusting the risk-return bias of a portfolio?


Expected return of individual securities

Standard deviation of individual securities

Correlation between securities

How each security would contribute to the portfolio return

The monetary amount of the portfolio 


Yanıt Açıklaması:

Here, the investor should consider:
(i) Expected return of individual securities, and how each would contribute to the portfolio return,
(ii) Standard deviation of individual securities, correlation between securities, and how these would
impact the standard deviation of the portfolio.

The monetary amount of a portfolio is not relative. Therefore, the answer is E

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