Instruction 16

question 10

Multiple Choice

Instruction 16.2:Use the information to answer the following question(s) .
A U.S. investor is considering a portfolio consisting of 60% invested in the U.S. equity index fund and 40% invested in the British equity index fund. The expected returns for the funds are 10% for the U.S. and 8% for the British, standard deviations of 20% for the U.S. and 18% for the British, and a correlation coefficient of 0.15 between the U.S. and British equity funds.
-Refer to Instruction 16.2. What is the expected return of the proposed portfolio?

• A)9.2%
• B)9.0%
• C)19.2%
• D)19%

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Definitions:

Improvising

The act of spontaneously creating or performing something without prior planning, often in response to unforeseen circumstances.

Changing Phase

A period or stage in a process of transformation where significant alterations occur, leading from one state to a different one.

Lewin's Model

A theory of change management that describes the process as having three stages: unfreezing, changing, and refreezing.

Effective Ways of Behaving

Strategies or approaches that are proven to lead to successful outcomes in personal interactions or task execution.