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:

1822

A specific year in the 19th century marked by various global historical events, lacking a singular defining characteristic without context.

1815

is the year marked by the end of the Napoleonic Wars with the defeat of Napoleon at the Battle of Waterloo.

Colonization Movement

An initiative mainly in the 18th and 19th centuries aimed at resettling freed African Americans in Africa, notably in Liberia.

Black Americans

Black Americans are citizens or residents of the United States with African ancestry, significantly contributing to the nation's culture, history, and socio-economic development.