The Expected Return on the Market Is 15 Percent with a Standard

question 19

Multiple Choice

The expected return on the market is 15 percent with a standard deviation of 12.5 percent and the risk-free rate is 5 percent.Which of the following portfolios are correctly priced?

• A) 1 and 3 only
• B) 1 and 4 only
• C) 2 and 3 only
• D) 3 and 4 only

---

Definitions:

Affirmative Action

Policies or measures that are implemented to promote equal opportunities for historically marginalized groups by considering traits like race and gender in decisions such as hiring.

Equal Consideration

The principle of treating all parties with impartiality and fairness, without discrimination.

Hostile Work Environments

Environments in the workplace where harassment or discriminatory conduct makes it difficult for an employee to work.

Science, Engineering, And Technology

Collective fields of study and application dedicated to understanding natural phenomena and solving practical problems.