The Expected Return of the Risky Asset Portfolio with Minimum

question 42

Multiple Choice

The expected return of the risky asset portfolio with minimum variance is _________.

• A) the market rate of return
• B) zero
• C) the risk-free rate
• D) There is not enough information to answer this question

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Definitions:

Opposite Direction

A term indicating a movement, action, or trend that goes in the reverse direction of a previously established pattern or expectation.

Correlation

A measure that represents the extent to which two variables change together, but it does not necessarily imply causation.

Validity

The extent to which a test, measure, or research accurately reflects or assesses the specific concept it is intended to.

Reliability

The degree to which an assessment tool or measurement can produce stable and consistent results over time.