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:

Diastolic Pressure

A measure of blood pressure between contractions of the heart.

Systolic Pressure

A measure of blood pressure generated by the heart’s contraction.

Cardiovascular Risk

The potential likelihood of an individual developing heart disease or stroke, influenced by factors such as high blood pressure, cholesterol levels, smoking, and diabetes.

Atherosclerosis

The formation of plaque within the arteries.