Your Client, Bo Regard, Holds a Complete Portfolio That Consists

question 51

Multiple Choice

Your client, Bo Regard, holds a complete portfolio that consists of a portfolio of risky assets (P) and T-Bills. The information below refers to these assets. $$\begin{array} { l l } \mathrm { E } \left( \mathrm { R } _ { \mathrm { p } } \right) & 12.00 \% \\\text { Standard Deviation of P } & 7.20 \% \\\text { T-Bill rate } & 3.60 \% \\& \\\text { Proportion of Complete Portfolio in P } & 80 \% \\\text { Proportion of Complete Portfolio in T-Bills } & 20 \% \\& \\\text { Composition of P: } & \\\text { Stock A } & 40.00 \% \\\text { Stock B } & 25.00 \% \\\text { Stock C } & 35.00 \% \\\hline\text { Total } & \underline { 100.00 \% } \\\hline\end{array}$$
-What is the standard deviation of Bo's complete portfolio?

• A)7.20%
• B)5.40%
• C)6.92%
• D)4.98%
• E)5.76%

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Definitions:

Humanistic

Relating to a psychological perspective that emphasizes the study of the whole person and their unique individuality and potential.

Abraham Maslow

An American psychologist best known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs.

Free Will

The belief in an individual's capacity to control their actions and make decisions independently of external forces.

Abraham Maslow

A renowned American psychologist who is famous for developing the hierarchy of needs theory, which suggests that psychological well-being is based on meeting essential human needs.