An Investment fiRm Is Considering a Portfolio with Equal Weighting

question 3

Multiple Choice

An investment firm is considering a portfolio with equal weighting in a cyclical stock and a countercyclical stock. It is expected that there will be three economic states; Good, Average and
Bad, each with equal probabilities of occurrence. The cyclical stock is expected to have returns of
12%, 5% and 1% in Good, Average and Bad economies respectively. The countercyclical stock is
Expected to have returns of -8%, 2% and 14% in Good, Average and Bad economies respectively.
Given this information, calculate portfolio variance.

• A) .00094
• B) .00084
• C) .00074
• D) .00064
• E) .00054

Evaluate the effects of labels and societal reactions on individuals with mental illness, including the process of deinstitutionalization.

Critique the Diagnostic and Statistical Manual (DSM) in terms of reliability, validity, and the influence of politics on psychiatric diagnoses.

Discuss the history and evolution of the treatment of mental illness, including moral treatment and the shift towards custodial care.

Understand the role of social stressors in mental illness and how they intersect with class, gender, and race.

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Definitions:

Output Standards

Benchmarks set to measure the quantity, quality, or performance of a product or service produced.

Inferior Good

A type of good for which demand decreases as the income of consumers increases, opposite to a normal good.

Demand

The quantity of a product or service that consumers are willing and able to purchase at various prices over a given period of time.

Income

Payments received, on an ongoing basis, as a result of employment or investment yields.