Suppose That Ms

question 9

Multiple Choice

Suppose that Ms.Lynch can make up her portfolio using a risk-free asset that offers a surefire rate of return of 15% and a risky asset with an expected rate of return of 25%, with standard deviation 5.If she chooses a portfolio with an expected rate of return of 20%, then the standard deviation of her return on this portfolio will be

• A)2.50%.
• B)5%.
• C)5.50%.
• D)1.25%.
• E)None of the above.

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Definitions:

Realistically Possible

A term used to describe actions or outcomes that can feasibly be achieved given existing conditions and limitations.

Understandable Terms

Language or jargon simplified or explained in a way that can be easily comprehended by individuals without specialized knowledge in a subject.

Planning Stage

The phase in project management or intervention development where goals are set, strategies are outlined, and resources are identified and allocated for implementation.