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%

---

Definitions:

Corms

Short, vertical, swollen underground plant stems that serve as storage organs to survive winter or dry months and to propagate new plants.

Germination

The process by which a plant grows from a seed or similar structure.

Imbibition

The process of absorption of water by plant tissues or seeds, often leading to swelling, which is critical for seed germination and plant growth.

Anaerobic Soils

Soils that lack oxygen, often found in waterlogged conditions, affecting the types of organisms and chemical reactions that can occur.