The Expected Return on the Market Is 11

question 99

Multiple Choice

The expected return on the market is 11.5 percent with a standard deviation of 13 percent and the risk-free rate is 4 percent.Which of the following portfolios are undervalued?

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

---

Definitions:

Politically Distinct Groups

Groups identified by their specific political beliefs, ideologies, or affiliations, distinguishing them from other political entities.

Territory

An area of land under the jurisdiction of a ruler or state; in animal behavior, a region defended by an animal or group of animals against others.

Civil War

An internal conflict within a country between factions or regions, often involving a struggle for power, autonomy, or ideological differences.

Slavery

Is the ownership and control of people.