What Is the Standard Deviation of an Efficient Portfolio with an 8

question 65

Multiple Choice

What is the standard deviation of an efficient portfolio with an 8 percent expected return? Assume the risk-free rate is 3.75 percent and the expected return on the market portfolio is 10 percent with a standard deviation of 20 percent.

• A) 2.62%
• B) 6.40%
• C) 6.80%
• D) 13.60%

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Definitions:

Projective Assessments

Unstructured assessments in which stimuli presented are ambiguous or incomplete and responses are not limited to specific given response choices.

Social Desirability

The tendency of respondents to answer questions in a manner that will be viewed favorably by others, which can lead to bias in survey or test responses.

Self-Report Inventories

Questionnaires in which individuals provide information about themselves, often used in psychological assessments and research.

Draw-A-Person Test

A projective psychological test used to evaluate a child's emotional and social development, intelligence, and neuropsychological functioning.