What Is the Expected Yield on the Market Portfolio at a Time

question 112

Multiple Choice

What is the expected yield on the market portfolio at a time when Treasury bills yield 6% and a stock with a Beta of 1.4 is expected to yield 18%?

• A)8.6%
• B)10.8%
• C)12.0%
• D)14.6%

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Definitions:

Frequencies

Frequencies refer to the rate at which a vibration occurs that constitutes a wave, either in materials (sound waves) or in electromagnetic fields (light waves), measured in hertz (Hz).

Earphones

A set of small loudspeakers that fit directly in or over the ears for individual listening.

Microseconds

A unit of time equal to one millionth (10^-6) of a second.

Auditory Neurons

Specialized neurons that transmit sound information from the ear to the brain, allowing for hearing.