Suppose You Invest Equal Amounts in a Portfolio with an Expected

question 74

Multiple Choice

Suppose you invest equal amounts in a portfolio with an expected return of 16% and a standard
Deviation of returns of 20% and a risk-free asset with an interest rate of 4%; calculate the expected
Return on the resulting portfolio:

• A) 10%
• B) 4%
• C) 12%
• D) none of the above

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Definitions:

Functional Flexibility

The ability of an organization to adapt and respond to changes by reallocating and utilizing its resources or workforce in different functions or roles.

Procedural Flexibility

The ability to adapt and change procedures and processes to meet different circumstances or preferences.

Written Rules

Formal guidelines and regulations that are documented and used to govern the actions and behaviors of members within an organization or society.

Equity

Equity involves fairness and justice in treatment, access, and opportunities, aiming to recognize and address disparities among different groups.