If You Were to Estimate the Expected Return on the Market

question 2

Multiple Choice

If you were to estimate the expected return on the market portfolio, you would need to know or estimate:

• A) the beta of the portfolio, the risk-free rate, and the level of the market over the next year.
• B) the risk-free rate and beta of the portfolio.
• C) the historical risk premium and the risk free rate.
• D) the level of the market over the next year, the risk-free rate, and the historical risk premium.

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Definitions:

Heart Disease

A range of conditions affecting the heart, including coronary artery disease, heart rhythm problems (arrhythmias), and heart defects among others.

Hypertension

A chronic medical condition in which the blood pressure in the arteries is elevated, requiring the heart to work harder than normal to circulate blood throughout the body.

Primary Care Physicians

Medical doctors who provide first-contact healthcare services and manage a wide range of health issues, acting as gatekeepers for specialized medical treatment.

Diagnosis Treatment

The process of identifying a disease or condition from its signs and symptoms, followed by a plan to treat or manage it.