During 1986-1990, the Mean Quarterly Returns on Treasury Bills and the S+P

question 42

Multiple Choice

During 1986-1990, the mean quarterly returns on treasury bills and the S+P 500 were 1.46% and 3.95%, respectively. Using the SML, if a portfolio had a beta of 1.2, its expected quarterly return would be

• A) 5.7%.
• B) 6.5%.
• C) 4.8%.
• D) 6.2%.

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Definitions:

Mass Colonic Peristalsis

The coordinated contraction and relaxation of colon muscles that moves content through the colon.

Defecate

The natural process of expelling feces from the body's rectum and anus as part of the digestive system's waste elimination.

Loop Colostomy

A surgical procedure in which a loop of the large intestine is brought through the abdominal wall to create a stoma for waste to exit the body.

Stoma

A surgically created opening on the body’s surface to allow for the elimination of waste, commonly associated with procedures like colostomies.