An Investor Was Expecting a Return of 14

question 49

Multiple Choice

An investor was expecting a return of 14.7% on her portfolio with a beta of 1.13 before the market risk premium decreased from 8 to 7%. Based on this change, what return should she now expect on the portfolio?

• A) 13.57%
• B) 13.89%
• C) 14.67%
• D)15.87%

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Definitions:

Myelination

The process of forming a myelin sheath around the nerves, improving the speed and efficiency of neural communication.

Synaptic Pruning

The process by which extra neurons and synaptic connections are eliminated in the brain to increase the efficiency of neuronal transmissions.

Mental Operation

Cognitive processes that involve manipulating information mentally, such as reasoning, problem-solving, and decision-making, in the developmental theories of Piaget.

Collective Monologues

Communications in which young children each voice their own thoughts without attending to what the others are saying.