What Is the Expected Return on an Efficient Portfolio with a Standard

question 3

Multiple Choice

What is the expected return on an efficient portfolio with a standard deviation of 15%? Assume the risk-free rate is 6% and the expected return on the market portfolio is 14.8% with a standard deviation of 20%.

• A)8.20%
• B)12.60%
• C)16.50%
• D)17.73%

Understand the importance of data privacy in the context of global companies.

Evaluate the ethical implications of sharing personal Internet activities with third parties.

Understand the concepts and calculations of net present value and present value index for investment decisions.

Identify the managerial tools and considerations relevant to capital investment decisions.

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Definitions:

Cement Manufacturer

A company engaged in the production of cement, a key ingredient in concrete.

Fixed Expenses

Costs that do not vary with the level of production or sales over a given period, such as rent or salaries.

Margin Of Safety

The difference between actual or budgeted sales and the break-even point, indicating the risk level of not covering fixed costs.

Contribution Format

A form of income statement where costs are divided into variable and fixed, and the contribution margin is calculated to determine profitability.