Use the Information to Answer the Following Question(s)

question 34

Multiple Choice

Use the information to answer the following question(s) .
A U.S. investor is considering a portfolio consisting of 60% invested in the U.S. equity index fund and 40% invested in the British equity index fund. The expected returns for the funds are 10% for the U.S. and 8% for the British, standard deviations of 20% for the U.S. and 18% for the British, and a correlation coefficient of 0.15 between the U.S. and British equity funds.
-Refer to Instruction 17.2. What is the expected return of the proposed portfolio?

• A)9.2%
• B)9.0%
• C)19.2%
• D)19%

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Definitions:

Descent Groups

Social groups whose membership is based on lineage or ancestry, tracing relationships through either maternal or paternal lines.

Common Ancestor

An individual or species from which two or more descendant species or individuals are derived in evolutionary biology, indicating a point of divergence in their lineage.

Descent Group

A social group whose members talk about common ancestry.

Lineage Group

A social group tracing descent from a common ancestor, thus forming a basic unit in the social structure of many societies.