Final answer:
The percentage of a portfolio allocated to a specific asset is known as b. portfolio weight. This figure is important for determining an investment's return and risk. Expected rate of return, risk, and actual rate of return are all significant concepts in the context of investing.
Step-by-step explanation:
The percentage of a portfolio's total value invested in a particular asset is called that asset's portfolio weight. This concept is critical in portfolio management as it helps determine the asset allocation and potential return, as well as the risk associated with the overall investment strategy. The expected rate of return is a separate concept that estimates the likely return on an investment over a time period and is measured as a percentage rate. Risk involves the uncertainty of a project's or investment's profitability and can manifest as default risk and interest rate risk. The actual rate of return, on the other hand, includes all gains and interest earned over a period. Identifying which investment has the highest expected return, which is the safest, and which is the riskiest involves analyzing these financial metrics and considering the probabilities of loss and gain associated with each investment.