The expected return on the market is 12% with a standard deviation of 20% and the risk-free rate is 4%.Which of the following portfolios are correctly priced?

A)1 and 2 only
B)1 and 4 only
C)2 and 3 only
D)3 and 4 only

Question

The expected return on the market is 12% with a standard deviation of 20% and the risk-free rate is 4%.Which of the following portfolios are correctly priced?

A)1 and 2 only 
B)1 and 4 only 
C)2 and 3 only 
D)3 and 4 only

Quizplus · Accepted Answer

The Answer of The expected return on the market is 12% with a standard deviation of 20% and the risk-free rate is 4%.Which of the following portfolios are correctly priced?

A)1 and 2 only 
B)1 and 4 only 
C)2 and 3 only 
D)3 and 4 only

The Expected Return on the Market Is 12% with a Standard