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.