Use the Following Information to Answer the Question(s)below

question 45

Multiple Choice

Use the following information to answer the question(s) below.
Assume that the economy has three types of people.20% are fad followers,75% are passive investors,and 5% are informed traders.The portfolio consisting of all informed traders has a beta of 1.4 and an expected return of 16%.The market has an expected return of 10% and the risk-free rate is 4%.
-The expected return for the fad follower's portfolio is closest to:

• A)11.5%.
• B)12.4%.
• C)13.6%.
• D)16.0%.

Comprehend the concept of cognitive development stages and their impact on thinking.

Identify barriers to critical thinking, including denial and resistance.

Discern the role of clichés in critical analysis.

Appreciate the importance of reasoning as a key characteristic for citizens.

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Definitions:

Low Density Particles

Particles that have a lower mass per unit volume compared to other particles or mediums.

Transported

Refers to materials or objects that have been moved from their original location by natural processes, such as water, wind, or ice.

Sediment Transport

The movement of solid particles, typically due to a combination of gravity acting on the sediment, and/or the movement of the fluid in which the sediment is entrained.

Stream Bed

The bottom of a stream or creek, where water flows and sediment is deposited, shaped by the flow of water over time.