{"id":53913,"date":"2024-04-16T00:01:16","date_gmt":"2024-04-16T00:01:16","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=53913"},"modified":"2024-04-16T00:01:16","modified_gmt":"2024-04-16T00:01:16","slug":"riskless-rate-in-addition-with-risk-premium-is-multiplied-by-standard-deviation-of-portfolio-for-using-to-calculate-expected-return-rate-on","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/riskless-rate-in-addition-with-risk-premium-is-multiplied-by-standard-deviation-of-portfolio-for-using-to-calculate-expected-return-rate-on\/","title":{"rendered":"Riskless rate in addition with risk premium is multiplied by standard deviation of portfolio for using to calculate expected return rate on"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;efficient portfolio&#8221; option2=&#8221;inefficient portfolio&#8221; option3=&#8221;attributable portfolio&#8221; option4=&#8221;non-attributable portfolio&#8221; correct=&#8221;option1&#8243;]<!--more--><\/p>\n<p>The correct answer is: A. efficient portfolio.<\/p>\n<p>An efficient portfolio is a portfolio that maximizes expected return for a given level of risk, or minimizes risk for a given level of expected return. The risk premium is the additional return that an investor expects to earn for taking on additional risk. The standard deviation of a portfolio is a measure of its volatility.<\/p>\n<p>To calculate the expected return rate on an efficient portfolio, you would add the riskless rate to the risk premium and multiply that by the standard deviation of the portfolio.<\/p>\n<p>The other options are incorrect because they do not describe an efficient portfolio. A non-efficient portfolio is a portfolio that does not maximize expected return for a given level of risk, or does not minimize risk for a given level of expected return. An attributable portfolio is a portfolio that is attributed to a specific investor or group of investors. A non-attributable portfolio is a portfolio that is not attributed to a specific investor or group of investors.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;efficient portfolio&#8221; option2=&#8221;inefficient portfolio&#8221; option3=&#8221;attributable portfolio&#8221; option4=&#8221;non-attributable portfolio&#8221; correct=&#8221;option1&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[945],"tags":[],"class_list":["post-53913","post","type-post","status-publish","format-standard","hentry","category-financial-management","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Riskless rate in addition with risk premium is multiplied by standard deviation of portfolio for using to calculate expected return rate on<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/riskless-rate-in-addition-with-risk-premium-is-multiplied-by-standard-deviation-of-portfolio-for-using-to-calculate-expected-return-rate-on\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Riskless rate in addition with risk premium is multiplied by standard deviation of portfolio for using to calculate expected return rate on\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;efficient portfolio&#8221; 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