Daring Dora Holds 90% of Her Assets in High-Technology Stocks

question 33

Multiple Choice

Daring Dora holds 90% of her assets in high-technology stocks, earning 12%, and 10% in long-term government bonds, earning 6%. The expected return on her portfolio:

• A) is 6%.
• B) is 9%.
• C) is 11.4%
• D) is 12%.
• E) cannot be determined without knowing what the dollar value of her assets is.

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Definitions:

Matched Pairs Sample

A study design where subjects are paired based on certain characteristics or conditions, and then differences between pairs are examined for impact of a treatment or condition.

Frequency Distributions

An arrangement of values that shows the frequency with which each value occurs.

Population Median

The middle value of a dataset when it is ordered from the smallest to the largest, representing the central tendency of the population.

Normal Approximation

Normal approximation is a statistical technique that applies the properties of the normal distribution to approximate the distribution of sample data or statistics.