What Happens to the Expected Portfolio Return If the Portfolio

question 7

Multiple Choice

What happens to the expected portfolio return if the portfolio beta increases from 1.0 to 1.5,the risk-free rate decreases from 5 to 4%,and the market risk premium increases from 8 to 9%?

• A) It increases from 12 to 14.0%.
• B) It increases from 13 to 17.5%.
• C) It increases from 12 to 12.5%.
• D) It increases from 13 to 13.5%.

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Definitions:

Sales Goals

Targets set by a business or sales team to achieve a specific amount of sales revenue within a certain timeframe.

Secondary Reinforcers

Stimuli which become reinforcing through their association with a primary reinforcer, not inherently rewarding themselves.

Primary

The most important or foundational in a series or system; often serving as the first or initial stage.

Self-efficacy

The belief in one's capabilities to organize and execute the courses of action required to manage prospective situations.