In order to determine the expected return of a portfolio, all of the following must be known except______________.
A. probabilities of expected returns of individual assets
B. weight of each individual asset to total portfolio value
C. expected return of each individual asset
D. all of the above must be known in order to determine the expected return of a portfolio
Answer: Option D
Solution(By Examveda Team)
In order to determine the expected return of a portfolio, all of the following must be known except all of the above must be known in order to determine the expected return of a portfolio. The expected return for an investment portfolio is the weighted average of the expected return of each of its components.This Question Belongs to Commerce >> Financial Management
Investment is the _______________.
A. net additions made to the nation’s capital stocks
B. person’s commitment to buy a flat or house
C. employment of funds on assets to earn returns
D. employment of funds on goods and services that are used in production process
Financial Management is mainly concerned with ______________.
A. All aspects of acquiring and utilizing financial resources for firms activities
B. Arrangement of funds
C. Efficient Management of every business
D. Profit maximization
The primary goal of the financial management is ____________.
A. to maximize the return
B. to minimize the risk
C. to maximize the wealth of owners
D. to maximize profit
In his traditional role the finance manager is responsible for ___________.
A. proper utilisation of funds
B. arrangement of financial resources
C. acquiring capital assets of the organization
D. efficient management of capital
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