Consider the Following Probability Distribution for Stocks a and B

question 19

Multiple Choice

Consider the following probability distribution for stocks A and B: The expected rate of return and standard deviation of the global minimum variance portfolio, G, are __________ and __________, respectively.

• A)10.07%; 1.05%
• B)8.97%; 2.03%
• C)10.07%; 3.01%
• D)8.97%; 1.05%

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Definitions:

Impulse Control

Impulse control is the ability to resist or delay an immediate reaction or temptation, in order to achieve a more beneficial outcome.

Reality Testing

A psychoanalytic therapy and mental health technique involving the practice of assessing whether thoughts or perceptions correspond to reality.

Self-actualization

Accomplishing the full extent of one’s skills and potential, viewed as a universal impulse or demand within each individual.

Impulse Control

The ability to resist or delay an impulse, desire, or temptation to act.