Allison's Portfolio Has an Expected Return of 14% and a Beta

question 77

Multiple Choice

Allison's portfolio has an expected return of 14% and a beta of 1.37.Brianna's portfolio has an expected rate of return of 11% and a beta of 1.The risk-free rate is 3% and the expected rate of return on the market is 12%.According to the Jensen's measure,

• A)Allison has the better portfolio.
• B)Brianna has the better portfolio.
• C)the portfolios are equally desirable.
• D)the answer depends on Allison and Brianna's risk tolerance.

Distinguish between a financial and an operational mindset within the family business context.

Identify the basis of strategic thinking and planning for an enterprising family.

Understand the components of the transformational leadership model.

Identify the characteristics and components of authentic leadership.

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Definitions:

Reseller

A business that purchases goods or services with the intention of selling them to others, rather than consuming or using them.

General Services Administration

A U.S. government agency responsible for managing and supporting the basic functioning offices of the federal government, including procurement and property management.

Chevy Volts

A hybrid electric vehicle produced by Chevrolet, known for its ability to run on both electricity and gasoline.

Government Unit

An organizational entity within the government responsible for specific administrative tasks or policy implementation.