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:

Imaginative

The ability to think creatively and form mental images or concepts that are not immediately present or have never been directly experienced.

Psychodynamic Theories

Theories in psychology that posit human behavior is influenced by unconscious drives and conflicts stemming from childhood experiences.

Unconscious Mental Forces

Mental processes that are not within an individual's conscious awareness but influence judgments, feelings, or behavior, often explored in psychoanalytic theory.

Productivity

The effectiveness of productive effort, especially in industry, as measured in terms of the rate of output per unit of input.