For Questions 1-3 Use the Information from the Following Table

question 11

Essay

For questions 1-3 use the information from the following table
$\begin{array} { l c c l } \text { Security } & \text { Return } & \text { Standard Deviation } & \text { Beta } \\\text { A } & 16 \% & 20 \% & 1.2 \\\text { B } & 12 \% & 25 \% & 0.8 \\\text { Risk-free asset } & 4 \% & 2 ? ? & \text { ??? }\end{array}$
-What is the value of systematic risk for a portfolio with 2/3 of
the funds invested in A and 1/3 of the funds invested in B?

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Definitions:

Low-Income

Referring to individuals or families whose earnings are significantly lower than the average, often quantified by government standards.

Regressive Tax

A tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases.

Proportional Tax

A tax system where the tax rate remains constant regardless of the amount subject to tax, meaning everyone pays the same percentage of their income.

Progressive Tax

A tax system where the tax rate increases as the taxable amount increases, burdening wealthier individuals more.