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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 was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt

Martin Rockenfeldt

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® 2025 Level I Curriculum, Volume 2, Module 1.