Suppose That Ms

question 3

Multiple Choice

Suppose that Ms.Lynch can make up her portfolio using a risk-free asset that offers a surefire rate of return of 10% and a risky asset with an expected rate of return of 15%, with standard deviation 5.If she chooses a portfolio with an expected rate of return of 15%, then the standard deviation of her return on this portfolio will be

• A)2.50%.
• B)8%.
• C)5%.
• D)10%.
• E)None of the above.

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Definitions:

Insect

A small arthropod animal that has six legs and, generally, one or two pairs of wings.

Excoriation

A skin lesion caused by scratching or abrasion, often resulting in a raw, irritated surface.

Bulla

A large blister or skin vesicle filled with fluid that is more than 5 mm in diameter, often occurring on the skin or mucous membranes.

Eczema

A noncontagious skin disease characterized by dry, red, itchy, and scaly skin.