If a Well-Diversified Portfolio of Stocks Has an Expected Return

question 38

Multiple Choice

If a well-diversified portfolio of stocks has an expected return of 25% when the expected return on the market portfolio is 15%,then

• A) Treasury bills are offering a 10% yield.
• B) The portfolio beta is greater than 1.0.
• C) The portfolio beta equals 1.67.
• D) The investor's portfolio contains many defensive stocks.

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Definitions:

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