If a Portfolio Had a Return of 12%, the Risk-Free

question 4

Multiple Choice

If a portfolio had a return of 12%, the risk-free asset return was 4%, and the standard deviation of the portfolio's excess returns was 25%, the risk premium would be

• A)8%.
• B)16%.
• C)37%.
• D)21%.

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Definitions:

Values Expected

The anticipated or predicted outcomes based on specific conditions or data.

Chi-Square Test

A statistical test used to determine the likelihood of observed frequencies in a categorical dataset differing by chance from expected frequencies.

Nominal and Ordinal

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Communication Research

The study of how people use messages to generate meanings within and across various contexts, channels, and media.