The Risk-Free Rate Is 5

question 16

Multiple Choice

The risk-free rate is 5.25 percent.The expected return on the market is 12 percent with a standard deviation of 18 percent.What is the standard deviation of an efficient portfolio with a 16 percent expected return?

• A) 7.33%
• B) 10.12%
• C) 19.11%
• D) 28.67%

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Definitions:

Behaviour Modification

A technique that operates on the principle that behaviour that is rewarded, or positively reinforced, will be exhibited more frequently in the future, whereas behaviour that is penalized or unrewarded will decrease in frequency.

Equity And Fairness

Principles ensuring impartial and just treatment or behavior without favoritism or discrimination.

Organizational Success

The achievement of the goals and objectives set by an organization, often measured by financial performance, market share, or other key indicators.

Workplace Hazardous Materials Information System

A standardized system in Canada that provides safety information about hazardous materials used in the workplace, including labels and safety data sheets.