-What Is the Expected Return of Stock B?
A) 9

question 66

Multiple Choice

$\begin{array}{llcc} \text {Expected return on the market } &13\% \\ \text { Standard deviation of the market } &21\%\\ \text { Risk-free rate} &5.5\%\\\text { Correlation coefficient between }&\\\text { Stock A and the market } & 0.65 \\\text { Stock B and the market } & 0.28 \\\text { Standard deviation of Stock A } & 64 \% \\\text { Standard deviation of Stock B } & 53 \%\end{array}$


-What is the expected return of Stock B?

• A) 9.24%
• B) 9.87%
• C) 10.83%
• D) 10.24%
• E) 11.23%

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Definitions:

Amygdala

A part of the brain's limbic system involved in emotion regulation, especially fear and pleasure responses.

Crowding

A situation in which too many people or objects are located within a particular space, leading to a sense of congestion or discomfort.

Authentic

Genuine or true to one's own personality, spirit, or character, often implying sincerity and integrity.

False Facial Expressions

Facial expressions that do not genuinely reflect the emotions one is actually feeling, often used in social situations to conceal true feelings.