-If You Were to Create a Portfolio Designed to Reduce

question 25

Multiple Choice

$$\begin{array}{l}\text { Expected Return (\%) }\\\begin{array} { c c c c } \text { Year } & \text { Asset A } & \text { Asset B } & \text { Asset C } \\\hline 1 & 6 & 8 & 6 \\2 & 7 & 7 & 7 \\3 & 8 & 6 & 8\end{array}\end{array}$$
-If you were to create a portfolio designed to reduce risk by investing equal proportions in each of two different assets, which portfolio would you recommend?

• A) Assets A and C
• B) Assets A and B
• C) none of the available combinations
• D) cannot be determined

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Definitions:

Standardized Activities

Tasks or procedures that are uniform and consistent across different times or places, ensuring predictability and efficiency.

Cultural Analysis

The examination and interpretation of the behaviors, values, and artifacts of a society to understand its culture.

Shared Values

Core beliefs or principles that are collectively held and guide the behavior and decision-making within an organization or society.

Motivational Mechanism

The process or system by which motivation is generated or regulated within individuals or groups.