What Is the Expected Return for a Portfolio with a Beta

question 52

Multiple Choice

What is the expected return for a portfolio with a beta of .5?

• A) 5%
• B) 7.5%
• C) 12.5%
• D) 15%

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Definitions:

Market System

An economic system where decisions regarding investment, production, and distribution are based on supply and demand, and prices of goods and services are determined in a free price system.

Government Regulation

Laws and rules set by the government to control the way businesses and industries operate, with the aim of protecting public interest.

Total Surplus

The sum of consumer surplus and producer surplus in a market, representing the total benefit to society from trading a good or service.

Producer Surplus

The difference between the amount a producer is willing to accept for a good or service versus what they actually receive.