Stock X Has an Expected Return of 10 Percent and a Standard

question 69

Multiple Choice

Stock X has an expected return of 10 percent and a standard deviation of 38 percent. Stock Y has an expected return of 13 percent and a standard deviation of 48 percent. The weight of Stock X in the minimum variance portfolio of the two assets is __________ than the weight of Stock Y.

• A) greater
• B) less
• C) the same
• D) less only if the correlation is negative
• E) greater only if the correlation is positive

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Definitions:

Muscle Impulses

Electrical signals that travel along the nerve fibers to stimulate muscle contraction.

Oxygen Debt

Amount of oxygen required to oxidize lactic acid produced anaerobically during strenuous muscle activity.

Lactic Acid Buildup

Accumulation of lactic acid in muscles during strenuous exercise, often associated with muscle fatigue and soreness.

Low Oxygen

A condition or environment where there is a reduced level of oxygen available, often leading to hypoxic conditions for living organisms.