If a Portfolio Had a Return of 15%,the Risk Free

question 23

Multiple Choice

If a portfolio had a return of 15%,the risk free asset return was 3%,and the standard deviation of the portfolio's excess returns was 34%,the risk premium would be _____.

• A)31%
• B)18%
• C)49%
• D)12%
• E)29%

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Definitions:

Aldosterone

A steroid hormone produced by the adrenal glands that regulates sodium and potassium balance in the blood, influencing blood pressure and fluid balance.

Adrenal Cortex

The outer part of the adrenal gland that produces essential hormones like cortisol and aldosterone, which regulate metabolism, blood pressure, and stress response.

Hypotonic

Describes a solution that has a lower osmotic pressure than another fluid, often causing cells to swell as water moves into them.

Isotonic

Refers to a solution that has the same salt concentration as the cells and the blood of the body or to muscle movements where tension remains unchanged and the muscle's length changes.