Suppose You Invest Equal Amounts in a Portfolio with an Expected

question 11

Multiple Choice

Suppose you invest equal amounts in a portfolio with an expected return of 16 percent and a standard deviation of returns of 18 percent and a risk-free asset with an interest rate of 4 percent.
Calculate the expected return on the resulting portfolio.

• A)10 percent
• B)4 percent
• C)12 percent
• D)9 percent

---

Definitions:

Carnivore

An animal or organism that primarily consumes the flesh of other animals for nutrition.

Herbivore

An animal that primarily eats plants or plant-based materials.

Trophic Level

The position an organism occupies in a food chain, indicating its level of energy transfer.

Secondary Consumer

An organism that primarily eats primary consumers and is typically a carnivore or an omnivore in a food chain.