What Is the Expected Return for a Portfolio That Has

question 38

Multiple Choice

What is the expected return for a portfolio that has $2,500 invested in a risk-free asset with a 5% rate of return, and $7,500 invested in a risky asset with a 17% rate of return and a 28% standard deviation?

• A)8.00%
• B)10.75%
• C)14.00%
• D)22.25%

---

Definitions:

Neuron

A specialized cell transmitting nerve impulses; a nerve cell.

Fibrocartilage

A tough, dense type of cartilage that provides substantial support and withstands heavy pressure.

Elastic Cartilage

A type of cartilage that contains elastic fibers, allowing it to stretch and return to its original shape, found in structures like the ear and epiglottis.

Hyaline Cartilage

A type of connective tissue found in various parts of the body, providing support with some flexibility, such as in the nose, trachea, and at the ends of ribs.