The Annualized Performance, in U $\sigma$ _US = 16%
Return_europe=11 $\sigma$ _europe =18%
Correlation = 0

question 12

Essay

The annualized performance, in U.S. dollars, of the U.S. and European stock indices are:
Return_US = 10% $\sigma$ _US = 16%
Return_europe=11% $\sigma$ _europe =18%
Correlation = 0.60
a. What would be the return and risk of a portfolio invested half in the U.S. market and half in the European index?
b. What if the correlation increases to 0.8?

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Definitions:

Maslow

Refers to Abraham Maslow, a psychologist known for creating Maslow's hierarchy of needs, a theory in psychology about human motivation.

Alderfer

Refers to Clayton Alderfer's ERG theory, which categorizes human needs into three groups: existence, relatedness, and growth.

Motivation Theories

Theoretical frameworks that explain how individuals are motivated to achieve their goals and how this motivation influences their behavior.

Expectancy Theory

A motivational theory suggesting that individuals are motivated to act in a certain way based on their expectation that the act will be followed by a desired outcome.