Stock a Has an Expected Return of 10 Percent Per

question 12

Multiple Choice

Stock A has an expected return of 10 percent per year and stock B has an expected return of 20 percent. If 40 percent of a portfolio's funds are invested in stock A and the rest in stock B, what is the expected return on the portfolio of stock A and stock B?

• A)10 percent
• B)20 percent
• C)16 percent
• D)14 percent

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Definitions:

Spearman

Refers to Charles Spearman, a British psychologist who theorized that intelligence is mainly determined by a single, general ability (“g factor”).

Sternberg

Refers to Robert Sternberg, an American psychologist known for his theory on intelligence and creativity, which includes components such as analytical, creative, and practical intelligence.

Terman

An American psychologist best known for his work in intelligence testing and the study of giftedness.

Componential Intelligence

an aspect of human intelligence that involves the ability to think analytically, solve problems methodically, and make logical judgments.