Treasury Notes Are Paying a 4% Rate of Return

question 21

Multiple Choice

Treasury notes are paying a 4% rate of return. A risk averse investor with a risk aversion of A = 3 should invest in a risky portfolio with a standard deviation of 24% only if the risky portfolio's expected return is at least ________.

• A)8.67%
• B)9.84%
• C)12.64%
• D)14.68%

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Definitions:

Isabel

A feminine given name of Spanish origin, often associated with historical or literary figures.

Apostrophes

Punctuation marks used to indicate either possession (e.g., the boy's hat) or the omission of letters or numbers (e.g., can't for cannot).

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Rooms within a dwelling intended primarily for sleeping and related activities.

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Belonging to individuals who are applying for a position or running in an election.