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%

---

Definitions:

Case Manager

A healthcare professional responsible for coordinating appropriate healthcare services and resources for individuals, particularly those with complex or ongoing medical conditions.

Social Worker

A professional who provides support and resources to people dealing with personal and social challenges to improve their well-being.

Case Manager

A professional responsible for planning and coordinating care and services for individuals or families, usually within healthcare or social services.

Home Health Nurse

A registered nurse who provides medical assistance and care to patients in their homes, often for those recovering from illness or surgery.