The Expected Returns for ABC Company and XYZ Company Are

question 99

Multiple Choice

The expected returns for ABC Company and XYZ Company are 12.0% and 9.0%, respectively.The standard deviation is 20.0% for ABC and 15.0% for XYZ.What is the portfolio standard deviation if one-third of the portfolio is in ABC and the two securities have perfect positive correlation?

• A)16.67%
• B)10.00%
• C)2.78%
• D)1.00%

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Definitions:

Cognitive-behavioral Therapies

A group of psychotherapeutic treatments that help patients understand the thoughts and feelings that influence behaviors.

Psychodynamic Therapies

A set of therapeutic approaches that emphasize unconscious psychological processes and past experiences as key factors in current psychological problems.

EMDR

Eye Movement Desensitization and Reprocessing is a form of psychotherapy intended to reduce the distress tied to memories of trauma.

Aversive Conditioning

A type of behavior conditioning that uses negative stimuli to reinforce a behavior's undesirable consequences.