Stocks A,B,and C All Have an Expected Return of 10

question 98

Multiple Choice

Stocks A,B,and C all have an expected return of 10% and a standard deviation of 25%.Stocks A and B have returns that are independent of one another,i.e. ,their correlation coefficient,r,equals zero.Stocks A and C have returns that are negatively correlated with one another,i.e. ,r is less than 0.Portfolio AB is a portfolio with half of its money invested in Stock A and half in Stock B.Portfolio AC is a portfolio with half of its money invested in Stock A and half invested in Stock C.Which of the following statements is CORRECT?

• A) Portfolio AC has an expected return that is less than 10%.
• B) Portfolio AC has an expected return that is greater than 25%.
• C) Portfolio AB has a standard deviation that is greater than 25%.
• D) Portfolio AB has a standard deviation that is equal to 25%.
• E) Portfolio AC has a standard deviation that is less than 25%.

Grasp the concept of consideration and its significance in contract validity.

Identify factors that can terminate an offer or make contracts voidable or void.

Differentiate between contracts, gifts, and the role of consideration in distinguishing them.

Learn the legal implications of contractual capacity and how it affects certain groups, such as minors.

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Definitions:

Drops/Ml

A unit measurement commonly used in medicine and pharmacy to quantify liquid drugs, indicating the number of drops per milliliter.

D₅W

An abbreviation for a medical solution called Dextrose 5% in Water, a form of glucose solution used in intravenous therapy for nutrition and hydration.

Infuse

To introduce a substance into something else, such as infusing a fluid into the body through a vein.

Dialysis Fistula

An artificially made passage between an artery and vein, typically in the arm, used for access during hemodialysis treatment for kidney failure.