Suppose That Ms

question 6

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 20%, with standard deviation 5.If she chooses a portfolio with an expected rate of return of 17.50%, then the standard deviation of her return on this portfolio will be

• A)3.75%.
• B)7.50%.
• C)6.75%.
• D)1.88%.
• E)None of the above.

---

Definitions:

Adaptive Value

The extent to which a trait or behavior increases the survival and reproduction chances of an organism in its environment.

Mental Processes

Internal cognitive operations that include thinking, perceiving, problem-solving, and remembering.

Ethical Principles

Fundamental guidelines or beliefs that govern the behavior and decision-making of individuals and organizations.

Confidentially

The assurance that sensitive information is kept secret and only disclosed according to agreed-upon terms or conditions.