Long distance telephone service has become a competitive market. the average cost per call is $0.05 a minute, and it's declining. the likely reason for the declining price for long distance service is:

The development of modern technology and an increase in competition for the use of long distance telephone service. The former use of expensive satellite telecommunications for phone calls, and the very limited number of service providers which did not exist years ago are the main reasons for a declining price. Along with this, as the technology has allowed more competitors into the marketplace, the amount of consumers with access to the market has increased, thus increasing competition and helping to lower the price.

I. Percentage of the portfolio invested in each individual security.

II. Projected states of the economy.

III. The performance of each security given various economic states.

IV. Probability of occurrence for each state of the economy.

Explanation: The expected return on a portfolio is the amount of revenue or income expected to be generated from the investment made on a portfolio( which is a group of financial assets like Stocks and non financial assets like Art

works etc).

THE EXPECTED RATE OF RETURN IS AFFECTED BY BOTH PERCENTAGE OF THE PORTFOLIO INVESTED IN EACH SECURITY,

THE PROJECTED OR FORCASTED STATE OF THE ECONOMY,

THE PERFORMANCE OF EACH SECURITY CONSIDERING DIFFERENT SITUATIONS,

THE PROBABILITY OF OCCURRENCE FOR EACH STATE OF THE ECONOMY ETC.