If a Portfolio Had a Return of 15%,the Risk Free

question 23

Multiple Choice

If a portfolio had a return of 15%,the risk free asset return was 3%,and the standard deviation of the portfolio's excess returns was 34%,the risk premium would be _____.

• A)31%
• B)18%
• C)49%
• D)12%
• E)29%

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Definitions:

Resale Price Maintenance

A practice where manufacturers and distributors agree on the price at which a product will be sold in retail, limiting what retailers can charge.

Antitrust Laws

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Controversial Business Practices

Practices in business that raise ethical, social, or environmental concerns and are debated by the public and experts alike.

Tying Strategy

A marketing strategy where a company requires customers to buy a secondary product or service together with a primary product.