Portfolio has expected return

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Reference no: EM132036911

1. Portfolio A has an expected return of 16% with a standard deviation of 8%. Portfolio B has an expected return of 12% with a standard deviation of 7%.

(a) Portfolio A has a lower risk/return.

(b) Portfolio B has a larger expected terminal wealth.

(d) Portfolio B has a more certain return.

(e) Portfolio B has a lower risk/return.

2. The percentage of the premium that the buyer of a call option is allowed to borrow through margin is

a. 50. b. 0. c. 33. d. 80.

Reference no: EM132036911

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