What Is the Expected Return on a Portfolio Comprised of $4,000

question 131

Multiple Choice

What is the expected return on a portfolio comprised of $4,000 in stock M and $6,000 in stock N if the economy enjoys a boom period?

• A) 6.4%
• B) 6.8%
• C) 10.4%
• D) 13.2%
• E) 14.0%

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Definitions:

Frustration Theory

A psychological theory suggesting that frustration, resulting from blocked goals, can lead to aggressive behavior.

Sequential Theory

A theory suggesting that understanding and behavior result from sequences of stimuli and responses, often emphasizing the importance of order in learning processes.

Extinction Contrast Effect

The phenomenon wherein the cessation of a previously reinforced behavior is accelerated when an alternative behavior continues to be reinforced.

Nonreward

A situation where an expected reward is not given, leading to extinction of the conditioned response over time.