You Invest $100 in a Risky Asset with an Expected

question 55

Multiple Choice

You invest $100 in a risky asset with an expected rate of return of 0.12 and a standard deviation of 0.15 and a T-bill with a rate of return of 0.05. What percentages of your money must be invested in the risky asset and the risk-free asset, respectively, to form a portfolio with an expected return of 0.09?

• A) 85% and 15%
• B) 75% and 25%
• C) 67% and 33%
• D) 57% and 43%
• E) Cannot be determined.

Recognize the importance of social gestures, such as handshakes and facial expressions, in making a positive impression.

Comprehend the role of social media and online activities in personal branding.

Identify the behavioral nuances of professional etiquette and their impact on workplace relations.

Realize the significance of voice quality, speech habits, and non-verbal cues in communication.

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Definitions:

Desired Behaviour

The specific actions or reactions that an organization or individual aims to elicit from others, typically to achieve a certain goal or outcome.

Reinforcement Schedule

A pattern that determines how often a desired behavior is reinforced in operant conditioning, influencing how quickly and robustly that behavior is learned.

Negative Reinforcement

A behavioral principle where the removal of an unfavorable outcome or stimulus strengthens a desired behavior.

Operant Conditioning

A learning method that uses rewards and punishments to shape behavior.