Your Client, Bo Regard, Holds a Complete Portfolio That Consists

question 37

Multiple Choice

Your client, Bo Regard, holds a complete portfolio that consists of a portfolio of risky assets (P) and T-Bills. The information below refers to these assets. $\begin{array}{lc} \text {E(Pp) } &12.00\%\\ \text { Standard Deviation of \( \mathrm{P} \) } &7.20\%\\ \text { T-Bill rate } &3.60\%\\\\ \text { Proportion of Complete Portfolio in P } &80\%\\ \text { Proportion of Complete Portfolio in T-Bills } &20\%\\\end{array}$

$\text { Composition of P: }$

$\begin{array}{cc} \text { Stock A} &40.00\%\\ \text { Stock B} &25.00\%&\\ \text { Stock C} &\underline{35.00\%}\\ \text { Total} &\underline{100.00\%}\\\end{array}$


What are the proportions of stocks A, B, and C, respectively, in Bo's complete portfolio?

• A) 40%, 25%, 35%
• B) 8%, 5%, 7%
• C) 32%, 20%, 28%
• D) 16%, 10%, 14%
• E) 20%, 12.5%, 17.5%

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Definitions:

Psychological Stressor

An event or situation that causes stress, affecting an individual’s psychological well-being.

Subconscious Processes

Mental activities below the level of conscious awareness that influence thoughts, feelings, and behaviors.

Lifetime Prevalence

The proportion of a population that at some point in their life (up to the time of assessment) have experienced a specific illness or condition.

Conversion Disorder

A mental health condition where psychological stress manifests as physical symptoms without a medical cause.