Use the Table for the Question(s)below

question 126

Multiple Choice

Use the table for the question(s) below.
Consider the following three individuals portfolios consisting of investments in four stocks:
-Assuming that the risk-free rate is 4% and the expected return on the market is 12%,then required return on Peter's Portfolio is closest to:

• A)10%
• B)12%
• C)9%
• D)8%

---

Definitions:

Rational Behavior

Decision-making processes that are logical and based on weighing the benefits and costs of various options.

Goal-Oriented Behavior

A pattern of behavior driven by the pursuit of specific objectives or desired outcomes, often characterized by focused effort and planning.

Rawls

Pertains to John Rawls, an American political philosopher known for his work in moral and political philosophy, especially in the theory of justice as fairness.

Rawls's Model

is a theoretical framework for justice suggested by philosopher John Rawls, emphasizing fairness and equality through the principles of liberty and difference.