If a Portfolio Had a Return of 11%, the Risk-Free

question 18

Multiple Choice

If a portfolio had a return of 11%, the risk-free asset return was 6%, and the standard deviation of the portfolio's excess returns was 25%, the risk premium would be

• A) 14%.
• B) 6%.
• C) 35%.
• D) 21%.
• E) 5%.

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Definitions:

Gene Therapy

A technique that modifies a person's genes to prevent or treat disease, often involving replacing malfunctioning genes with functional ones.

BRCA Analysis

Genetic testing to identify mutations in the BRCA1 and BRCA2 genes, which increase the risk of several types of cancer, particularly breast and ovarian cancer.

Polymerase Reaction

A laboratory technique used to make millions of copies of a specific DNA sequence, facilitating the study and detection of genetic material.

DNA Fingerprinting

A technique used to identify individuals by analyzing characteristics of their DNA that are unique to them.