Use the Following Information to Answer the Question(s)below

question 24

Multiple Choice

Use the following information to answer the question(s) below. The volatility of the market portfolio is 10%,the expected return on the market is 12%,and the risk-free rate of interest is 4%.
-The expected return on the portfolio of the three stocks is closest to:

• A)10.0%.
• B)11.4%.
• C)11.8%.
• D)12.0%.

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Definitions:

Tea-Ceremony

A ritualized form of making and drinking tea, especially in Japan, emphasizing aesthetics, spirituality, and social etiquette.

Water Jar

A container used for storing, carrying, and dispensing water, often made from materials such as clay, metal, or plastic.

Momoyama Period

The Momoyama period, occurring from 1573 to 1603 in Japan, is known for its political unification under strong daimyo and is noted for vibrant art, castle architecture, and the tea ceremony.

Tokonoma

A built-in recessed space in a Japanese style reception room, where items for artistic appreciation are displayed.