Portfolio a Has Expected Return of 10% and Standard Deviation

question 56

Multiple Choice

Portfolio A has expected return of 10% and standard deviation of 19%.Portfolio B has expected return of 12% and standard deviation of 17%.Rational investors will

• A)Borrow at the risk free rate and buy A.
• B)Sell A short and buy B.
• C)Sell B short and buy A.
• D)Borrow at the risk free rate and buy B.
• E)Lend at the risk free rate and buy B.

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Definitions:

Reform Movement

A collective effort aimed at making changes in society through improvements in legal, social, or political institutions, often driven by public concern for moral or efficient governance.

Temperance Movement

A social movement against the consumption of alcoholic beverages, prominent in the 19th and early 20th centuries, leading to the Prohibition era in the United States.

Antiprostitution Movement

Social and legal campaigns aimed at prohibiting or reducing prostitution based on moral, health, or social concerns.

William Lloyd Garrison

A prominent American abolitionist, journalist, and social reformer who was best known for founding and publishing the anti-slavery newspaper "The Liberator."