The Market Is Expected to Generate a 11% Return and the Risk

question 83

Multiple Choice

The market is expected to generate a 11% return and the risk free rate is 4%. A portfolio manager has 80% of her capital allocated to stock A with a beta of 0.9, which generated a total return of 12%. 20% of her capital is allocated to stock B with a beta of 1.3, which generated a total return of 13%. What concept is demonstrated to explain the alpha being generated by the manager?

• A) Capital allocation
• B) Stock picking
• C) Technical analysis
• D) Fundamental analysis

Recognize how self-perception theory explains attitude formation and change.

Identify effective strategies for persuasion and their underlying principles.

Understand social facilitation and its effects on performance.

Distinguish between normative and informational social influence.

---

Definitions:

Hygienic Products

Products designed to maintain cleanliness and promote health, such as soaps, sanitizers, and other personal care items.

Family Customs

Traditions, practices, and beliefs passed down within a family, shaping the cultural and social identity of its members.

Social Groups

Collections of individuals bound together by common interests, values, identities, or social relationships.

Personal Preferences

Individual likes, dislikes, or choices based on one's tastes or opinions.