ECONOMICS (CBSE/UGC NET)

ECONOMICS

RISK AND RETURN

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Which is the portfolio return?
A
rawa+rbwb-rcwc
B
rawa+rbwb
C
sdawa+rbwb
D
all
Explanation: 

Detailed explanation-1: -Portfolio return refers to the gain or loss realized by an investment portfolio containing several types of investments. Portfolios aim to deliver returns based on the stated objectives of the investment strategy, as well as the risk tolerance of the type of investors targeted by the portfolio.

Detailed explanation-2: -Total return, when measuring performance, is the actual rate of return of an investment or a pool of investments over a given evaluation period. Total return includes interest, capital gains, dividends, and distributions realized over a period.

Detailed explanation-3: -A portfolio is composed of two or more securities. Each portfolio has risk-return characteristics of its own. A portfolio comprising securities that yield a maximum return for given level of risk or minimum risk for given level of return is termed as ‘efficient portfolio’.

Detailed explanation-4: -Current (or ending) value-Initial (or starting) value + Dividends-Fees / Initial Value. Multiply the result by 100 to convert the decimal to a percentage.

There is 1 question to complete.