Suppose That Ms

question 2

Multiple Choice

Suppose that Ms.Lynch can make up her portfolio using a risk-free asset that offers a surefire rate of return of 5% and a risky asset with an expected rate of return of 10%, with standard deviation 5.If she chooses a portfolio with an expected rate of return of 8.75%, then the standard deviation of her return on this portfolio will be

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

---

Definitions:

International Organization

An entity composed of members from different countries operating across national boundaries, typically formed to address common interests or issues.

Arbitration

A form of alternative dispute resolution where a neutral third party makes a binding decision to resolve a dispute.

Original Contract

The initial agreement made between parties, detailing the terms, conditions, and obligations to which all parties have agreed.

Negotiated Rulemaking

A process in administrative law where regulators develop rules by involving those who will be significantly affected by them, aiming for consensus.