The Variance of the Return on the Market Portfolio Is

question 11

Multiple Choice

The variance of the return on the market portfolio is .04 and the expected return on the market portfolio is 20%. If the risk-free rate of return is 10%, the market degree of risk aversion, A, is ________.

• A) .5
• B) 2.5
• C) 3.5
• D) 5

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Definitions:

European Dominance

The historical period when European powers exerted major economic, political, and cultural influence over other parts of the world.

Fundamental Constitutions

The basic laws and principles that form the foundation of a government, outlining the structure of the government and the rights of the governed.

Carolina

Originally a British colony in North America, later split into North Carolina and South Carolina during colonial times.

Hierarchical

Pertaining to a system that ranks people or things above one another in a series of levels or orders.