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The Stock Market of Country a Has an Expected Return

question 69

Essay

The stock market of country A has an expected return of 5%, and a standard deviation of expected return of 8%. The stock market of country B has an expected return of 15% and a standard deviation of expected return of 10%.
-Calculate the expected return of a portfolio that is half invested in A and half in B.


Definitions:

Cognitive-Affective Personality System (CAPS)

A psychological theory that emphasizes the interaction of cognitive and emotional processes in shaping personality.

Personality System

The organized set of characteristics, traits, and behaviors that uniquely define how a person interacts with the environment and others.

Insight

The ability to understand the inner nature of things or a deep understanding of a person or situation.

Idiographic Goals

Personalized goals that are unique to an individual, emphasizing their singular narrative or life pathway.

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