What Return Would Be Expected by an Investor Whose Portfolio

question 125

Multiple Choice

What return would be expected by an investor whose portfolio was 25% market portfolio and 75% Treasury bills if the risk-free rate was 7% and the market risk premium was 8%?

• A) 8.00%
• B) 9.00%
• C) 10.75%
• D) 13.00%

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Definitions:

Food Deprivation

The condition of having insufficient food to meet basic nutritional needs, leading to hunger or starvation.

Salivary Glands

Glands that furnish moisture that helps in tasting and digesting food.

Moisture

The presence of a liquid, usually water, often in trace amounts, within a substance, material, or environment.

Ghrelin

A hormone produced mainly by the stomach that stimulates appetite and promotes fat storage.