An Investor Was Expecting an 18% Return on His Portfolio

question 36

Multiple Choice

An investor was expecting an 18% return on his portfolio with Beta of 1.25 before the market risk premium increased from 8% to 10%.Based on this change, what return will now be expected on the portfolio?

• A)20.0%
• B)20.5%
• C)22.5%
• D)26.0%

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Definitions:

Human Body

The physical structure of a person, including the bones, muscles, and organs.

Defense of the Accused

Legal representation and strategies used to protect the rights and argue the innocence of someone charged with a crime.

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The brothers of one's spouse or the husbands of one's siblings.