For a potential investment of $5,000,a portfolio has an expected monetary value (EMV)of $1,000 and a standard deviation of $100.What is the rate of return?
A) 10%
B) 50%
C) 20%
D) 5%

Name: For a potential investment of $5,000,a portfolio has an expected monetary value (EMV)of $1,000 and a standard deviation of $100.What is the rate of return? A) 10% B) 50% C) 20% D) 5%
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Question

Quizplus · Accepted Answer

The rate of return is calculated by dividing the expected monetary value by the initial investment. So, $1,000 / $5,000 = 0.20 or 20%.

For a Potential Investment of $5,000,a Portfolio Has an Expected