The Weights of a and B in the Global Minimum

question 43

Multiple Choice

The weights of A and B in the global minimum variance portfolio are _____ and _____,respectively.

• A)0.24; 0.76
• B)0.50; 0.50
• C)0.57; 0.43
• D)0.43; 0.57
• E)0.76; 0.24

---

Definitions:

Decision Making

Decision making is the process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.

Biases

Systematic patterns of deviation from norm or rationality in judgment, where particular feelings or opinions influence decision-making.

Uncertainty

Describes a situation where the outcomes or consequences of actions are unknown and unpredictable.

Probability

Likelihood that a given outcome will occur.