A Portfolio Consists 20% of a Risk-Free Asset and 80

question 53

Multiple Choice

A portfolio consists 20% of a risk-free asset and 80% of a stock.The risk-free return is 4%.The stock has an expected return of 15% and a standard deviation of 30%.What's the expected return

• A) 12.8%
• B) 9.5%
• C) 15.0%
• D) 4.0%

---

Definitions:

Snowfall

The phenomenon of meteorological precipitation where snowflakes, composed of ice crystals, fall from clouds.

Significance Level

The probability of rejecting the null hypothesis when it is actually true, used in hypothesis testing as a threshold for making decisions.

Population Distributions

The spread of characteristics or values within a whole population, often visualized as a graph.

Difference Between Values

The subtraction result of one value from another, often used to measure variation or change in data sets.