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Question
The expected return on a portfolio is
a. the sum of the square root of the expected returns on the individual stocks included in the portfolio times the beta of the individual stocks.
b. the simple arithmetic average of the expected returns on the individual stocks included in the portfolio.
c. the geometric average of the expected returns on the individual stocks included in the portfolio.
d. the weighted average of the expected returns on the individual stocks included in the portfolio.
Answer
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