Given $\mathbf { u } = \langle 3 , - 2 \rangle$

question 176

Multiple Choice

Given $\mathbf { u } = \langle 3 , - 2 \rangle$ and $\mathbf { v } = \langle - 3,2 \rangle$ , determine $- 4 \mathbf { u } - \mathbf { v }$ .

• A) \(- 4 \mathbf { u } - \mathbf { v } = \langle 9 , - 14 \rangle\)
• B) \(- 4 \mathbf { u } - \mathbf { v } = \langle - 9,6 \rangle\)
• C) \(- 4 \mathbf { u } - \mathbf { v } = \langle - 14 , - 14 \rangle\)
• D) \(- 4 \mathbf { u } - \mathbf { v } = \langle 11 , - 14 \rangle\)
• E) \(- 4 \mathbf { u } - \mathbf { v } = \langle - 11,10 \rangle\)

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Definitions:

Systematic Risk

The risk inherent to the entire market or market segment, also known as market risk, which cannot be eliminated through diversification.

Capital Allocation Line

A line on a graph that shows the rates of return of portfolios that optimally combine risk and return for an investor.

Risk-averse Investors

Individuals who prefer lower returns with known risks rather than higher returns with unknown risks.

Optimal Risky Portfolio

An investor’s best combination of risky assets; the combination that maximizes the Sharpe ratio.