An Investor Can Design a Risky Portfolio Based on Two

question 50

Multiple Choice

An investor can design a risky portfolio based on two shares, A and B. The standard deviation of return on Share A is 20% while the standard deviation on Share B is 15%. The expected return on Share A is 20% while on Share B it is 10%. The correlation coefficient between the return on A and B is 0%. The expected return on the minimum variance portfolio is approximately ________.

• A)10.00%
• B)13.60%
• C)15.00%
• D)19.41%

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Definitions:

Bed Rest

A medical treatment recommendation where a patient is advised to lie down and limit physical activity, often to speed up recovery.

Support Surface

Materials or devices used on a bed or chair to redistribute pressure and prevent pressure injuries or sores.

Pressure Reduction

Strategies or devices used to alleviate pressure on specific areas of the body, often to prevent pressure ulcers or enhance comfort.

Patient Movement

The process of transferring patients from one location to another within or between medical facilities, often involving specialized equipment and protocols to ensure safety.