Stocks A, B, and C Are Similar in Some Respects

question 10

Multiple Choice

Stocks A, B, and C are similar in some respects: Each has 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 greater than 25%.
• B) Portfolio AB has a standard deviation that is greater than 25%.
• C) Portfolio AB has a standard deviation that is equal to 25%.
• D) Portfolio AC has a standard deviation that is less than 25%.
• E) Portfolio AC has an expected return that is less than 10%.

Recognize the factors contributing to the identification and support of gifted individuals, including the concept of "hidden giftedness."

Grasp heritability estimates for intelligence and their implications.

Understand the potential for environmental influence on intelligence through research findings.

Assess the role of cultural, social, and stereotype influences on IQ and intelligence assessment.

---

Definitions:

Ovulation

The release of an egg from an ovary, an event that occurs usually once in each menstrual cycle, enabling fertilization if sperm are present.

White Blood Cell Count

A measure of the number of white blood cells in a volume of blood, used as an indicator of immune system health.

Water-Soluble Drug Use

Refers to the application and administration of drugs that can dissolve in water, affecting their absorption and distribution in the body.

Glomerulus

A network of capillaries located at the beginning of a nephron in the kidney, involved in the filtration of blood.