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:

Identity

The way in which an individual perceives themselves, which can be influenced by personal choices, experiences, and societal factors.

Role Confusion

A situation where an individual has difficulty understanding or fulfilling the expectations of a particular social position or role.

Personality Development

The pattern of change in individual characteristics, behaviors, and feelings across the lifespan.

Neurological Bases

The underlying nervous system components, including the brain and spinal cord, that support cognitive and physical functions.