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

question 19

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%

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Definitions:

Retention

The ability to keep or hold onto something, such as information or substances, within a system or body.

Long-Term Memory Formation

The process of transferring information from short-term to long-term memory, involving consolidation and the strengthening of neural connections.

Structural Changes

Alterations in the physical or organizational structure of something, often referring to the brain or other bodily organs.

Long-Term Potentiation

A process that increases the strength of synapse connections, enhancing the ability to learn and remember.