UPS,a Delivery Services Company,has a Beta of 1

question 96

Multiple Choice

UPS,a delivery services company,has a beta of 1.2,and Wal-Mart has a beta of 0.8.The risk-free rate of interest is 4% and the market risk premium is 7%.What is the expected return on a portfolio with 40% of its money in UPS and the balance in Wal-Mart?

• A)9.91%
• B)10.01%
• C)10.72%
• D)11.85%

Identify the characteristics and differences between uniform, normal, and exponential probability distributions.

Understand the implications of z-values in the context of normal distributions.

Comprehend the structure and properties of a normal probability distribution.

Understand the importance and application of probability density functions.

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Definitions:

Neuron

A nerve cell that is the basic building block of the nervous system, responsible for receiving, processing, and transmitting information.

Soma

The cell body of a neuron, containing the nucleus and other structures vital for cell function.

Terminal Buttons

Small knobs at the end of an axon that release chemicals called neurotransmitters into the synapse.

Synaptic Cleft

The small gap at a synapse between neurons, through which neurotransmitters are released and received.