If Real Estate Has an Expected Return of 10% and Stocks

question 15

Multiple Choice

If real estate has an expected return of 10% and stocks have an expected return of 15% then what would be the expected return of a portfolio consisting of 80% real estate and 20% stocks?

• A) 11%
• B) 12%
• C) 13%
• D) 14%

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Definitions:

Self-esteem

A person’s personal assessment of their own value or worth from a subjective standpoint.

Vicious Cycle

A sequence of reciprocal cause and effect in which two or more elements intensify and aggravate each other, leading to a worsening situation.

Negative Self-concept

The perception or image a person has of themselves that is generally characterized by lack of confidence and feelings of inadequacy or undesirability.

External Locus

The belief that one's successes or failures result from external factors beyond their control, rather than one's own efforts.