Suppose That Ms

question 4

Multiple Choice

Suppose that Ms.Lynch in Workouts 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 12.50%, then the standard deviation of her return on this portfolio will be

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

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Definitions:

Theory Of Recovery

Legal principles that provide the basis on which a plaintiff can sue and obtain damages or other remedies in court.

Establishing Duty

The process of determining whether an individual or entity has a legal obligation or responsibility in a particular situation.

MacPherson v. Buick

A landmark court case that established the principle that manufacturers owe a duty of care to not only the purchasers of their products but also to the users.

Foreseeable Plaintiff

A concept in tort law referring to an individual who could be reasonably expected to be harmed by the defendant's actions or negligence.