Portfolio containing several individual stocks

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You are assigned the task of computing the expected return on a portfolio containing several individual stocks. Which one of the following statements is correct concerning this task?

The summation of the return deviation from the portfolio expected return for each economic state must equal zero.

The portfolio beta must be 1.0.

The arithmetic average of the betas for each security held in the portfolio must equal 1.0.

The standard deviation of the portfolio must equal 1.0.

The expected rate of return on the portfolio must be positive.

Reference no: EM131180511

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