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

Question 32

Multiple Choice

The expected return on the market is 12% with a standard deviation of 15% and the risk-free rate is 5%.What is the required return on an efficient portfolio that has a standard deviation of 18%?


A) 10.83%
B) 12.67%
C) 13.40%
D) 14.40%

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