An Investment Advisor Has Recommended a $50,000 Portfolio Containing Assets

question 70

Multiple Choice

An investment advisor has recommended a $50,000 portfolio containing assets R, J, and K; $25,000will be invested in asset R, with an expected annual return of 12%; $10,000 will be invested in assetJ, with an expected annual return of 18%; and $15,000 will be invested in asset K, with an expected annual return of 8%. The expected annual return of this portfolio is

• A) 10.00%.
• B) 12.00%.
• C) 12.67%.
• D) unable to be determined from the information provided.

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Definitions:

Relativistic Thinking

The cognitive ability to understand that knowledge and viewpoints can be relative and dependent on the context.

Autonomous Judgment

The ability to make decisions independently, based on one’s own reasoning and values.

Dualistic Thinking

A cognitive tendency to see situations and issues in black and white, categorizing concepts as either/or without acknowledging complexities.

Relativistic

Pertaining to the concept that points of view have no absolute truth or validity, having only relative, subjective value according to differences in perception and consideration.