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:

Monroe Doctrine

A cornerstone of U.S. foreign policy introduced by President James Monroe in 1823, declaring opposition to European colonization in the Americas and stating that any intervention by external powers in the politics of the Americas would be seen as a hostile act against the U.S.

Latin American Nations

Countries in the Western Hemisphere south of the United States, where Romance languages (primarily Spanish and Portuguese) are spoken, known for their rich cultural diversity and historical significance.

Political Affairs

Refers to activities related to the governance of a country or area, including policies, regulations, and political actions.

Financial Affairs

Matters related to money management, including investments, budgeting, banking, and the handling of financial assets and liabilities.