David knows that the beta of his portfolio is equal to 1, but he does not know the risk-free rate of return or the market risk premium. He also knows that the expected return on the market is 7.50 percent. What is the expected return on David’s portfolio?

7.5%

Explanation:

Since the beta of this portfolio is 1, it means that it is perfectly synced with the market rate of return. We are told that the market rate of return is 7.5%, so that means that the expected rate of return of the portfolio should also be equal to 7.5%.

Beta measures the volatility of the portfolio or the stocks in relation to the market. If the stock is less volatile, the beta will  be less than 1, if the stock is more volatile, the beta will be more than 1.

-the personal ownership of property

-the influence of consumer demand

explanation:

the command economy prohibits the personal ownership of property.

basically, command economy is defined as the system where a nation’s government is the one that makes all the decisions when it comes to its economy. the government is the one who controls the production of goods and services and regulates the prices and salaries.

therefore, since that the government is the authority, then all kinds of personal ownership of property is prohibited by them.