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

question 41

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%.
• E) 29%.

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Definitions:

Product Brochure

A marketing document designed to introduce a product or service to potential customers, highlighting features, benefits, and specifications.

Sampling

The process of selecting a subset of individuals or items from a larger population or collection to estimate characteristics of the whole group.

Commodity Products

Commodity products are basic goods that are interchangeable with other goods of the same type, typically standardized and traded on bulk in markets.

Buying Decisions

The process by which individuals or organizations select products or services to purchase, influenced by factors such as needs, desires, and external pressures.