THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 113

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
Investment A has an expected return of 8% with a standard deviation of 2.5%.Investment B has an expected return of 6% with a standard deviation of 1.2%.Assume you invest equally in both investments and that the rates of return are independent.
-What is the standard deviation of the return on your portfolio? Assume that the returns on the two investments are independent.

• A)2.77
• B)2.50
• C)7.69
• D)6.25

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Definitions:

Short-term Memory

Short-term memory refers to the capacity for holding a small amount of information in an active, readily available state for a short period of time.

Long-term Memory

A type of memory capable of storing information for extended periods, ranging from a few days to decades, and includes facts, experiences, and skills.

Cocktail-Party Phenomenon

The ability to focus one's auditory attention on a particular stimulus while filtering out a range of other stimuli, as if at a noisy party.

Broadbent's Filter Theory

A theory suggesting that information is filtered through a selective attention mechanism that allows only a portion of sensory inputs to reach consciousness.