Consider the Following Probability Distribution for Stocks a and B

question 76

Multiple Choice

Consider the following probability distribution for stocks A and B: If you invest 35% of your money in A and 65% in B, what would be your portfolio's expected rate of return and standard deviation

• A)9.9%; 3%
• B)9.9%; 1.1%
• C)10%; 1.7%
• D)10%; 3%

---

Definitions:

Survival Surgery

A surgical procedure performed on animals for experimental purposes where the animal is expected to recover.

Presented Information

Information that is provided or made available to an individual or group for consideration or analysis.

Avoid Losses

A principle in behavioral finance and economics indicating people's tendency to prefer avoiding losses to acquiring equivalent gains, known as loss aversion.

Kahneman And Tversky

Psychologists noted for their work on the psychology of judgment and decision-making, as well as behavioral economics.