A Portfolio Is Composed of Two Shares, a and B

question 32

Multiple Choice

A portfolio is composed of two shares, A and B. Share A has a standard deviation of return of 24% while Share B has a standard deviation of return of 18%. Share A comprises 60% of the portfolio while Share B comprises 40% of the portfolio. If the variance of return on the portfolio is .0380, the correlation coefficient between the returns on A and B is ________.

• A)0.583
• B)0.225
• C)0.327
• D)0.128

Recognize the significance of various systems concepts like entropy, nonsummativity, and equifinality in analyzing organizations.

Identify the role of equivocality in organizational communication and how it's managed.

Explain the process of sense-making in organizations as described by Weick.

Describe the concept of feedback (both positive and negative) and its role in maintaining organizational homeostasis.

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Definitions:

Ego

In psychology, a component of Sigmund Freud's theory of personality, the ego operates based on the reality principle, balancing the desires of the id and the moral constraints of the superego.

Id

A component of the psyche in psychoanalytic theory that is responsible for instinctual drives and demands immediate satisfaction.

Libido

A term used to describe sexual drive or desire, often discussed in psychoanalytic theories.

Heinz Kohut

A psychoanalyst known for his development of self psychology, which emphasizes the importance of empathetic relationships in the formation of the self.