Suppose You Borrow at the Risk-Free Rate an Amount Equal

question 22

Multiple Choice

Suppose you borrow at the risk-free rate an amount equal to your initial wealth and invest in a portfolio with an expected return of 20 percent and a standard deviation of returns of 16 percent. The risk-free asset has an interest rate of 4 percent. Calculate the standard deviation of the resulting portfolio.

• A)28 percent
• B)40 percent
• C)32 percent
• D)36 percent

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Definitions:

Male Gaze

A concept in feminist theory describing the act of depicting women and the world, in visual arts and literature, from a masculine, heterosexual perspective that presents and represents women as sexual objects for the pleasure of the male viewer.

Social Comparison

The process of evaluating oneself in relation to others, often in terms of abilities, achievements, and social status, which can influence self-esteem and behavior.

Attractive Models

Individuals chosen for their physical aesthetics to represent, advertise, or promote products and concepts.

Face-ism

The bias or tendency to focus more on individuals' faces than their bodies when representing them in visual media, often analyzed in terms of gender representation.