What Return Would Be Expected by an Investor Whose Portfolio

question 83

Multiple Choice

What return would be expected by an investor whose portfolio was 25% market portfolio and 75% Treasury bills if the risk-free rate was 7% and the market risk premium was 8%?

• A)8.00%
• B)9.00%
• C)10.75%
• D)13.00% Expected return on market = r_f + market risk premium
• = 7% + 8%
• = 15%
• R_f = (.25 x .07) + (.75 x 15)
• = 1)75 + 11.25

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Definitions:

Epigenetic Studies

Research focused on understanding changes in gene expression caused by mechanisms other than changes in the underlying DNA sequence.

Imaging Methods

Techniques and processes used to create images of the body's internal structures and organs for medical diagnostic purposes, including MRI, X-rays, and CT scans.

Invasive

Referring to procedures or species that intrude, spread, or intervene in areas where they are not wanted, often causing harm.

CT Scans

A medical imaging technique that combines a series of X-ray measurements taken from different angles to produce cross-sectional images of specific areas of a scanned object, allowing the doctor to see inside the object without cutting.