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:

Learning Theories

Frameworks describing how information is absorbed, processed, and retained during learning.

Bad Memories

Refer to recollections of past events that are negative, distressing, and possibly traumatic, which can impact an individual's emotional well-being.

Married People

Individuals who are united in marriage, recognized by law or by societal norms.

Younger People

Generally refers to individuals who are in the earlier stages of their life course, often characterized by higher flexibility, adaptability, and learning capacity.