Suppose That Portfolio Y Has a 20% Return and 22

question 102

Multiple Choice

Suppose that portfolio Y has a 20% return and 22% standard deviation. Market portfolio has a 15% return and 15% standard deviation. The annual risk-free rate is 5%. What is the M² measure?

• A) 0.57%
• B) -1.5%
• C) 0.23%
• D) 8.0%
• E) -0.75%

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Definitions:

Circumscription

The process by which individuals limit their career options based on perceived barriers or societal expectations.

Compromise

A method of resolving differences where each party makes concessions to reach a mutually acceptable agreement.

Self-Concept

An individual's understanding and assessment of their own abilities, traits, and characteristics.

Niche Seeking

The process of finding a specialized segment of a market or an area well-suited for a person's talents or interests.