You Own a Portfolio That Is Invested 50% in a Risk-Free

question 278

Multiple Choice

You own a portfolio that is invested 50% in a risk-free asset and 50% in a stock that is equally as risky as the market. The risk-free asset has an expected return of 5%. Your portfolio has an expected return of 8.80%. What is the expected return on the market?

• A) 11.60%
• B) 11.75%
• C) 12.30%
• D) 12.35%
• E) 12.60%

Determine the outcome of allowing trade on a country's export and import statuses.

Understand the concept of comparative advantage and how it affects trade decisions.

Analyze the effects of trade on producer and consumer surplus.

Recognize the role of tariffs and their impact on trade.

---

Definitions:

Differentia

The characteristic that distinguishes a particular species from other members of the same genus in taxonomy, or more generally, the distinguishing feature of something.

Too Broad

A term used to describe statements, questions, or categories that are so wide-ranging they lack focus, making them difficult to address or answer succinctly.

Too Narrow

Excessively limited in scope or applicability, potentially overlooking important aspects or excluding relevant information.

Broad

Wide in extent or scope; a term that can refer to an extensive range or be used to describe something with vast applicability or definitions.