If a Portfolio Had a Return of 12%, the Risk-Free

question 41

Multiple Choice

If a portfolio had a return of 12%, the risk-free asset return was 4%, and the standard deviation of the portfolio's excess returns was 25%, the risk premium would be

• A) 8%.
• B) 16%.
• C) 37%.
• D) 21%.
• E) 29%.

---

Definitions:

Reflection

The act of mentally reviewing and contemplating one's thoughts, feelings, actions, and experiences for the purpose of learning or gaining insight.

Interpersonal Therapy (IPT)

A brief psychotherapy designed to help people with depression better understand and cope with problems relating to their interpersonal relationships.

Specific Phobias

Intense, irrational fears of specific objects or situations that pose little to no actual danger, but provoke anxiety and avoidance behaviors.

Interpersonal Role Disputes

Conflicts that occur when individuals have differing expectations about their roles within a relationship or social setting.