You Invest $1000 in a Complete Portfolio

question 56

Multiple Choice

You invest $1000 in a complete portfolio. The complete portfolio is composed of a risky asset with an expected rate of return of 16% and a standard deviation of 20% and a Treasury bond with a rate of return of 6%. A portfolio that has an expected value in one year of $1100 could be formed if you place ________ of your money in the risky portfolio and the rest in the risk-free asset.

• A)40%
• B)55%
• C)60%
• D)75%

---

Definitions:

Neurochemical Memory

A concept referring to the role of neurotransmitters and other chemicals in the brain in the formation, storage, and retrieval of memories.

Discovered Memories

Memories that were previously unknown or forgotten, often coming to light through therapy or spontaneously, sometimes controversial in nature.

Recovered Memories

Memories of traumatic events that were not consciously accessible for some time, but later recalled, often controversial in psychology.

Cognitive Psychologist

A professional specializing in the scientific study of mental processes such as perception, thought, memory, and reasoning.