The Expected Return on the Market Is 12% with a Standard

question 32

Multiple Choice

The expected return on the market is 12% with a standard deviation of 15% and the risk-free rate is 5%.What is the required return on an efficient portfolio that has a standard deviation of 18%?

• A)10.83%
• B)12.67%
• C)13.40%
• D)14.40%

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Definitions:

Full Potential

The maximum level of development or achievement one can realistically attain, often regarding personal skills, talents, or abilities.

Multicultural

Pertaining to, or representing several different cultures or cultural elements, often emphasizing the importance of diversity and inclusivity in society.

Immigration Trends

Patterns or movements of people relocating from one country to another, often analyzed for their causes, effects, and characteristics.

Birth Rates

The number of live births per thousand of population per year, a key demographic indicator often used to assess population growth or decline.