What Is the Standard Deviation of an Efficient Portfolio with an 8

question 109

Multiple Choice

What is the standard deviation of an efficient portfolio with an 8% expected return? Assume the risk-free rate is 3.75% and the expected return on the market portfolio is 10% with a standard deviation of 20%.

• A)2.62%
• B)6.40%
• C)6.80%
• D)13.60%

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Definitions:

Methanol

A simple alcohol with the formula CH3OH, used as a solvent, antifreeze, fuel, and as feedstock for the production of chemicals.

Major Organic Products

Primary substances formed as a result of organic reactions, often the focus of synthesis goals.

Major Product

The compound that is formed in the greatest yield in a chemical reaction, as predicted by the reaction mechanism.

Reaction

A process in which substances interact to form one or more new substances with different properties.