Use the Information for the Question(s)below

question 85

Multiple Choice

Use the information for the question(s) below.
Suppose that you currently have $250,000 invested in a portfolio with an expected return of 12% and a volatility of 10%.The efficient (tangent) portfolio has an expected return of 17% and a volatility of 12%.The risk-free rate of interest is 5%.
-You want to maximize your expected return without increasing your risk.Without increasing your volatility beyond its current 10%,the maximum expected return you could earn is closest to:

• A).12.0%.
• B)12.5%.
• C)13.4%.
• D)15.0%.

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Definitions:

Mini Solar-System

Refers to a model or system that resembles a small-scale version of our solar system, often used in educational contexts.

Large And Small Moons

Natural satellites that orbit planets, varying widely in size from the tiny moonlets to the large bodies like Earth's Moon or Jupiter's Ganymede.

Largest Planet

Jupiter, known as the largest planet in the solar system, distinguished by its massive size and gas giant composition.

Solar System

The collection of eight planets and their moons in orbit around the sun, together with smaller bodies in the form of asteroids, meteoroids, and comets.