If a and B Are Two Risky Assets That Are

question 10

Multiple Choice

If A and B are two risky assets that are less than perfectly correlated, and P is a portfolio with 1/2 its value in A and 1/2 its value in B, then:

• A) Volatility of P = 1/2)Volatility of A) + 1/2)Volatility of B)
• B) Volatility of P > 1/2)Volatility of A) + 1/2)Volatility of B)
• C) Volatility of P < 1/2)Volatility of A) + 1/2)Volatility of B)
• D) Volatility of P = 1/4)Volatility of A)*Volatility of B)

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Definitions:

Cognitive Development

The study of how thinking, problem-solving, and intelligence evolve as an individual grows from infant to adult.

Vygotsky

A psychologist known for his theory on social development and the concept of the Zone of Proximal Development, emphasizing the role of social interaction in learning.

Skilled People

Individuals possessing specialized knowledge, expertise, or abilities in particular areas, often acquired through training or experience.

Formal Operational Thought

The stage of cognitive development, according to Piaget, where individuals begin to think abstractly and reason logically, typically starting around age 12.