Use the Table for the Question(s)below

question 31

Essay

Use the table for the question(s)below.
Consider the following expected returns,volatilities,and correlations:
-Consider a portfolio consisting of only Microsoft and Wal-Mart stock.Calculate the volatility of such a portfolio when the weight on Microsoft stock is 0%,25%,50%,75%,and 100%

Understand the concepts of marginal propensity to save (MPS) and consume (MPC).

Calculate average propensity to consume (APC) and average propensity to save (APS) given disposable income and consumption data.

Interpret the relationship between disposable income, consumption, and saving.

Identify autonomous and induced consumption and their roles in the economy.

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Definitions:

Commitments

Promises or obligations that an individual has agreed to fulfill, often requiring dedication and hard work.

Abraham Maslow

An American psychologist known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs in priority, culminating in self-actualization.

Theory

A set of principles on which the practice of an activity is based, or an idea used to account for a situation or justify a course of action.

Agreeableness

Agreeableness is a personality trait characterized by being kind, sympathetic, cooperative, warm, and considerate towards others.