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

question 61

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) 8.67%
• B) 10.84%
• C) 12.02%
• D)14.57%

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Definitions:

Actual Output

Actual output refers to the real level of production achieved by an economy at a given time, which may differ from its potential or expected output.

Resource Suppliers

Entities or individuals that provide the essential inputs or resources needed for production, including labor, capital, materials, and technology.

Expected Price Level

The anticipated average price of goods and services in the economy at a future point in time.

Actual Price Level

The current general level of prices for goods and services in an economy, which can affect purchasing power and inflation.