Weighted average expected return of the individual stocks

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There are two ways to calculate the expected return of a? portfolio: Either calculate the expected return using the value and dividend stream of the portfolio as a? whole, or calculate the weighted average of the expected returns of the individual stocks that make up the portfolio. Which return is? higher? ?(Select the best choice? below.)

A. The weighted average expected return of the individual stocks is higher because returns are concave.

B. Neitherlong dash—both calculations give the same answer.

C. The weighted average expected return of the individual stocks is higher because returns are convex.

D. Impossible to? tell, it depends on the portfolio.

Reference no: EM131297423

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