The Expected Rate of Return and Standard Deviation of the Global

question 78

Multiple Choice

The expected rate of return and standard deviation of the global minimum variance portfolio,G,are __________ and __________,respectively.

• A)10.07%; 1.05%
• B)8.97%; 2.03%
• C)10.07%; 3.01%
• D)8.97%; 1.05%
• E)none of the above

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Definitions:

Discount Rate

The interest rate used in discounted cash flow (DCF) analysis to determine the present value of future cash flows.

Cash Outflows

Financial transactions representing money leaving a business, such as payments for expenses, investments, and loans.

Cash Inflows

Money or assets entering a business from various sources, including sales, investments, financing, and more.

Working Capital

The discrepancy between a firm's immediate assets and its short-term obligations, highlighting its short-term financial stability.