Investments B and C Both Have the Same Standard Deviation

question 32

Multiple Choice

Investments B and C both have the same standard deviation of 20 percent and have the same correlation to the market portfolio. If the expected return on B is 15 percent and that of C is 18 percent, then the investors would

• A)prefer B to C.
• B)prefer C to B.
• C)reject both B and C.
• D)The answer cannot be determined without knowing investors' risk preferences.

Recognize the impact of personal projects and current concerns on individual motivation.

Differentiate between various theories of motivation (McClelland’s motivations, entity, and incremental theories of ability).

Appreciate the role of decision-making processes in social learning theory.

Understand Mischel's if … then model and its implications for personal consistency.

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Definitions:

Resocialization

The process by which individuals undergo training or retraining to learn the norms, values, and behaviors appropriate for a new social role or environment.

Socializing Agents

Individuals, groups, or institutions that play significant roles in integrating individuals into the social world by teaching social norms, values, and roles.

Values, Roles

Fundamental beliefs or principles that guide behavior, and the functions or positions individuals occupy in a social system.

Initiation Rite

A ceremonial event or ritual marking the entrance or acceptance of an individual into a group or society.