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Business, 13.12.2021 20:30 lolweapon

Which of the following statements are true of a well-diversified portfolio’s expected return? I. It cannot exceed the expected return of the best performing security in the portfolio.
II. It must be equal to or greater than the expected return of the worst performing security in the portfolio.
III. It is independent of the unsystematic risks of the individual securities held in the portfolio.
IV. It is independent of the allocation of the portfolio amongst individual securities.

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