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:

Meta-analysis

A statistical technique that combines the results of multiple scientific studies to arrive at a conclusion that has greater statistical power.

Double-blind Procedure

An experimental procedure in which neither the subjects of the experiment nor the persons administering the experiment know the critical aspects of the experiment, thus ensuring that neither the expectations of the subjects nor those of the experimenters influence the results.

Representative Sample

A representative sample is a subset of a population that accurately reflects the members of the entire population, crucial for generalizing findings from research.

Representative Sample

A portion of a population that reliably mirrors the attributes of the entire group.