Calculate the Return on an Optimal Portfolio Where the Return $2 \%$

question 36

Multiple Choice

Calculate the return on an optimal portfolio where the return on the risky asset is 5%,the return on the risk-free asset is 4%,and where the investor invests has a weight of 75% in the risky asset.

• A) \( 2 \% \)
• B) \( 3.50 \% \)
• C) \( 4.75 \% \)
• D) \( 5.25 \% \)

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Definitions:

Young Age

A stage of life characterized by early development and growth, typically referring to childhood or youth.

Mental Disorder

A condition characterized by disturbances in a person's thoughts, emotions, or behavior, leading to significant distress or impaired functioning.

Given Year

A specific year that is mentioned or referred to in a context.

Percent

A ratio or fraction expressed as a part of 100 denoting a proportion of a whole.