What Is the Standard Deviation of an Efficient Portfolio with a 7.5

question 107

Multiple Choice

What is the standard deviation of an efficient portfolio with a 7.5% expected rate of return, given that RF is 0.50%, ER_m is 6.0% and $\sigma$ _m is 21%?

• A)28.10%
• B)3.56%
• C)1.50%
• D)26.69%

---

Definitions:

Progressive Taxes

A tax system in which the tax rate increases as the taxable amount increases, placing a higher tax burden on individuals with higher incomes.

Proportional Taxes

A tax system where the tax rate remains constant regardless of the amount on which the tax is imposed, resulting in taxes being proportionate to the income.

Direct Taxes

Taxes paid directly to the government by the individual or organization on whom it is levied, such as income tax or property tax.

Direct Tax

A form of taxation where the burden directly falls on the income or wealth of the individual or entity being taxed, such as income tax or property tax.