Security A's Expected Return Is 10 Percent While the Expected

question 9

Multiple Choice

Security A's expected return is 10 percent while the expected return of B is 14 percent.The standard deviation of A's returns is 5 percent, and it is 9 percent for B.An investor plans to invest equal amounts in A and B.Which of the following statements is true about this portfolio consisting of stock A and stock B.

• A)The risk of the portfolio is equal to 7 percent.
• B)The lower the correlation of returns between the two stocks, the higher the portfolio's risk.
• C)The risk of the portfolio is primarily dependent on the utility function of the investor.
• D)The higher the correlation of returns between the two stocks, the higher the portfolio's risk.

Describe the strategic elements of a marketing mix (product, price, place, promotion) and their role in marketing planning.

Explain the concept of utility in marketing and how different types of utility contribute to customer value.

Identify the components of a company's marketing plan and how they guide strategic decisions.

Understand the impact of external environmental factors on marketing decisions through environmental scanning.

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Definitions:

Experimental Control

The practice of eliminating or constant variables in an experiment to ensure that the observed effects are due to the variable being tested.

Functionalism

A philosophical approach emphasizing the roles or functions of consciousness and mental processes in adapting to the environment.

William James

An influential American psychologist and philosopher, known for his contributions to pragmatic philosophy and psychology, including theories of self and emotion.

Chemistry

The branch of science concerned with the substances of which matter is composed, their properties, reactions, and the use of such reactions to form new substances.