What Is the Expected Return on a Portfolio That Is

question 127

Multiple Choice

What is the expected return on a portfolio that is equally-weighted amongst A, B, and the risk-free asset? The return on the risk-free asset is 4%.

• A) 8.9%
• B) 9.3%
• C) 10.1%
• D) 11.8%
• E) 13.8%

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Definitions:

Sociobiology

The study of the biological basis of social behavior, seeking to understand how evolution influences social organization and behavior in humans and other animals.

Evolutionary Psychology

The theoretical approach in psychology that examines mental traits, such as memory, perception, and language, from the perspective of evolutionary theory and adaptation.

Sociobiology

An interdisciplinary branch of science that studies the biological underpinnings of social behavior across species.

Empathy

The ability to understand and share the feelings of another person, fostering emotional connection and comprehension.