Use the Information for the Question(s)below

question 114

Multiple Choice

Use the information for the question(s) below.
Suppose you have $10,000 in cash and you decide to borrow another $10,000 at a 6% interest rate to invest in the stock market.You invest the entire $20,000 in an exchange traded fund (ETF) with a 12% expected return and a 20% volatility.
-The expected return on your investment is closest to:

• A)18%.
• B)20%.
• C)12%.
• D)24%.

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Definitions:

Structured Assessments

Another term used to describe an objective assessment.

Questionnaires

A set of written questions used to collect information from respondents for research or assessment purposes.

Self-Reports

Self-reports are a type of psychological test or survey in which individuals provide information about themselves, often regarding behaviors, feelings, or attitudes.

Formal Personality Assessments

Structured and systematic psychological tests used to evaluate an individual's personality traits and characteristics in a formal setting, often for diagnostic or selection purposes.