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Basic Question 7 of 23

Assume that a portfolio is invested in three securities. Security A has an expected return of 8%, security B has an expected return of 10%, and security C has an expected return of 14%. If the portfolio weights are 20%, 40%, and 40%, respectively, the expected return on the portfolio should be ______%.

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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz

Tamara Schultz

Learning Outcome Statements

calculate and interpret the mean, variance, and covariance (or correlation) of asset returns based on historical data

calculate and interpret portfolio standard deviation

describe the effect on a portfolio's risk of investing in assets that are less than perfectly correlated

CFA® 2024 Level I Curriculum, Volume 2, Module 1.