What Is the Expected Return on a Portfolio That Will

question 12

Multiple Choice

What is the expected return on a portfolio that will decline in value by 13% in a recession,will increase by 16% in normal times,and will increase by 23% during boom times if each scenario has equal likelihood?

• A) 8.67%
• B) 13.00%
• C) 13.43%
• D) 17.33%

---

Definitions:

ERP Task

A method in neuroscience that measures the brain's electrical activity response to a specific sensory, cognitive, or motor event.

Amplitude Responses

The degree of change or variation in a signal's strength or intensity, typically measured in relation to a response or output.

ERP Signals

Event-Related Potentials; these are measured brain responses that are the direct result of a specific sensory, cognitive, or motor event.

Stimulus Presentation

The method or manner in which a stimulus is shown to a participant in a study, affecting their reactions or responses.