Exhibit 8.6 Use the Information Below for the Following Problem(S)

question 25

Multiple Choice

Exhibit 8.6
Use the Information Below for the Following Problem(S)
Jonathan Crowley is a portfolio manager for a large pension fund. Last year his portfolio had an actual return of 12.6% with a standard deviation of 13% and a beta of 1.3. The market risk premium for this period of time was 6% and the risk-free rate of return was 5%.
-Refer to Exhibit 8.6.Based on the Capital Asset Pricing Model (CAPM) ,what is the required rate of return for this portfolio?

• A) 6.3%
• B) 7.8%
• C) 10.6%
• D) 12.8%
• E) 15.4%

Identify ethical guidelines in psychological research.

Understand the experimental method and variables involved in psychological research.

Appreciate the importance of replicability in scientific research.

Acknowledge the role and area of focus of different psychological perspectives and theories.

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Definitions:

Visualization

The process of forming a mental image of something, especially abstract concepts or situations.

Establish Credibility

The process of building trust and believability in one's competence and character in a given context.

Share Beliefs

The act of communicating and exchanging personal values, convictions, or views with others to establish common ground or understanding.

Self-Assured

Characterized by confidence in one's abilities or qualities, often leading to assertive behavior and positive outcomes in interpersonal interactions.