Suppose That Person X and Person Y Live Close to One

question 77

Multiple Choice

Suppose that Person X and Person Y live close to one another, and run into one another nearly every day. Compared to most people, their chances of becoming friends are ____ and their chances of becoming enemies are ____.

• A) higher; much higher still
• B) higher; about as high
• C) higher; average
• D) higher; lower

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Definitions:

Standard Deviations

A statistic that measures the dispersion of a dataset relative to its mean, used to quantify the amount of variation or spread of a set of data values.

Stocks A and B

Placeholder names used in discussions to refer to two specific, but unspecified, stocks or to compare aspects of different stocks.

Return

The income generated from an investment, expressed as a percentage of the investment's original cost.

Markowitz Efficient Frontier

A graphical representation of the most efficient portfolios that provide the best possible return for a given level of risk.