Exhibit 7.12 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 42

Multiple Choice

Exhibit 7.12
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

-Calculate the expected return for a three asset portfolio with the following

• A)11.71%
• B)11.12%
• C)15.70%
• D)14.25%
• E)6.75%.

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Definitions:

Variation

The differences observed within and among populations in genetically inherited characteristics, essential for natural selection and evolution.

Heritability

The proportion of observed variation in a particular trait among individuals of a population that can be attributed to inherited genetic factors.

Medium Ground Finch

A species of bird in the Galapagos Islands, known for its variable beak size, studied in the context of natural selection.

Australian Snake

Reptiles found in Australia, known for both venomous and non-venomous species, playing crucial roles in the ecosystem as predators and prey.