If a Portfolio Had a Return of 18%, the Risk-Free

question 27

Multiple Choice

If a portfolio had a return of 18%, the risk-free asset return was 5%, and the standard deviation of the portfolio's excess returns was 34%, the risk premium would be

• A) 13%.
• B) 18%.
• C) 49%.
• D) 12%.
• E) 29%.

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Definitions:

Budgets

Are plans that commit resources to projects or activities.

Single-use Plans

Plans developed to achieve a set of goals that are not intended to be repeated in the future, specific to a unique situation.

Standing Plans

Refers to established policies, procedures, and rules that provide a basis for decision-making and action in recurring situations.

Project Schedule

A planned timeline for the tasks and milestones involved in completing a project, often depicted in a Gantt chart or similar tool.