When Shares with the Same Expected Return Are Combined into a Portfolio

Multiple Choice

When shares with the same expected return are combined into a portfolio:

A) the expected return of the portfolio is less than the weighted average expected return of
The shares.
B) the expected return of the portfolio is greater than the weighted average expected return
Of the shares.
C) the expected return of the portfolio is equal to the weighted average expected return of
The shares.
D) there is no relationship between the expected return of the portfolio and the expected
Return of the shares.
E) None of the above.