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If a Portfolio Had a Return of 11%, the Risk-Free

Question 18

Multiple Choice

If a portfolio had a return of 11%, the risk-free asset return was 6%, and the standard deviation of the portfolio's excess returns was 25%, the risk premium would be


A) 14%.
B) 6%.
C) 35%.
D) 21%.
E) 5%.

Correct Answer:

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