If a well-diversified portfolio of stocks has an expected return of 25% when the expected return on the market portfolio is 15%,then
A) Treasury bills are offering a 10% yield.
B) The portfolio beta is greater than 1.0.
C) The portfolio beta equals 1.67.
D) The investor's portfolio contains many defensive stocks.

Question

Quizplus · Accepted Answer

The Answer of If a well-diversified portfolio of stocks has an expected return of 25% when the expected return on the market portfolio is 15%,then
A) Treasury bills are offering a 10% yield.
B) The portfolio beta is greater than 1.0.
C) The portfolio beta equals 1.67.
D) The investor's portfolio contains many defensive stocks.

If a Well-Diversified Portfolio of Stocks Has an Expected Return