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An Investor Was Expecting an 18% Return on Her Portfolio

question 118

Multiple Choice

An investor was expecting an 18% return on her portfolio with beta of 1.25 before the market risk premium decreased from 8 to 6%.Based on this change,what return will now be expected on the portfolio?


Definitions:

Tangible

describes physical objects that can be seen, touched, and measured, as opposed to intangible items like services or digital products.

Time Utility

The value added to products or services by making them available at the most opportune time.

Digital Marketspace

An online platform or environment where businesses and consumers can interact and conduct transactions electronically.

Recreational Equipment, Inc.

An American retail and outdoor recreation services corporation, often referred to by its abbreviation, REI.

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