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

question 56

Multiple Choice

The expected return on the market is 12% with a standard deviation of 20% and the risk-free rate is 4%.Which of the following portfolios are correctly priced?

• A)1 and 2 only
• B)1 and 4 only
• C)2 and 3 only
• D)3 and 4 only

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Definitions:

Depression

A common mental health disorder characterized by persistent sadness, loss of interest in activities, and a range of emotional and physical problems.

Age-Related Health Problems

Health issues that become more prevalent or severe as individuals age, including chronic diseases, mobility issues, and cognitive decline.

Depressive Symptoms

Signs and behaviors associated with depression including persistent sadness, lack of interest in activities, changes in weight or sleep, and feelings of worthlessness.

Elderly Patients

Individuals of advanced age, often considered to be those aged 65 and above, particularly when discussing their healthcare needs.