Gretta's Portfolio Consists of $700,000 Invested in a Stock That

question 41

Multiple Choice

Gretta's portfolio consists of $700,000 invested in a stock that has a beta of 1.2 and $300,000 invested in a stock that has a beta of 0.8. The risk-free rate is 6% and the market risk premium is 5%. Which of the following statements is CORRECT?

• A) the required return on the market is 10%.
• B) the portfolio's required return is less than 11%.
• C) if the risk-free rate remains unchanged but the market risk premium increases by 2%, gretta's portfolio's required return will increase by more than 2%.
• D) if the market risk premium remains unchanged but expected inflation increases by 2%, gretta's portfolio's required return will increase by more than 2%.
• E) if the stock market is efficient, gretta's portfolio's expected return should equal the expected return on the market, which is 11%.

Grasp the significance of constructive feedback in collaborative projects.

Recognize the importance of technology and tools in facilitating team communication and project management.

Understand the use of technology to facilitate collaboration across different geographic locations.

Grasp the concept of active listening and its implementation in effective communication.

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Definitions:

Fraternal Organizations

Clubs or groups organized around shared interests or common goals, often with a focus on brotherhood or mutual aid.

Calculus-Based Trust

Trust that is based on the calculation of benefits and detriments associated with trusting someone, often grounded in past exchanges and experiences.

Trustor

An individual or entity that places confidence or trust in another, often within the context of a relationship or transaction.

Sustaining Trust

Maintaining confidence and reliability in relationships or systems over time.