The Expected Return of a Portfolio on the Capital Market

question 79

Multiple Choice

The expected return of a portfolio on the Capital Market Line (CML) is 14% with a standard deviation of 25%.The risk-free rate is 6%.What is the expected return on an efficient portfolio with a standard deviation of 30%?

• A)9.6%
• B)15.6%
• C)22.8%
• D)16.8%

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Definitions:

Progressive Approaches

Methods or strategies that evolve over time to address complex challenges in various fields such as education, healthcare, or social policy.

SES (Socioeconomic Status)

An assessment of where a person or family stands in societal and economic terms compared to the rest, taking into account their income, educational achievements, and professional role.

Health Care

The organized provision of medical services to individuals or a community.

Charles Spearman

A British psychologist who is best known for his work in statistics and intelligence theory, including the concept of general intelligence (g factor).