The Expected Return from a Portfolio Made Up Equally of Two

question 77

Multiple Choice

The expected return from a portfolio made up equally of two assets that move perfectly opposite of each other would have a standard deviation equal to:

• A) 1.0
• B) -1.0
• C) 0.0
• D) 0.5

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Definitions:

Inattentional Blindness

The psychological phenomenon where an individual fails to perceive an unexpected stimulus in plain sight due to the focus of attention elsewhere.

Task Difficulty

The level of challenge presented by a task, which can affect performance and engagement.

Attention

the act or state of applying the mind to something; the ability to closely and carefully listen, watch, or consider something or someone.

Automatic Processing

The performance of a task with little or no conscious thought, often as a result of repeated practice and learning.