For a Potential Investment of $5,000,a Portfolio Has an Expected

question 77

Multiple Choice

For a potential investment of $5,000,a portfolio has an expected monetary value (EMV) of $1,000 and a standard deviation of $100.What is the rate of return?

• A) 10%
• B) 50%
• C) 20%
• D) 5%

---

Definitions:

Credits

Accounting entries that increase liability, revenue, or equity accounts and decrease asset or expense accounts.

Transaction

Refers to an agreement or exchange between two or more parties that results in the movement of money or resources.

Exchanges

Transactions where goods, services, or securities are traded between two parties without the use of cash.

Other Parties

Refers to third parties or external entities involved in transactions or agreements outside of the primary parties concerned.