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:

Negative Punishment

A decrease in behavior that results from a removed consequence.

Skinnerian Principles

Behavioral principles based on the work of B.F. Skinner, emphasizing the effects of reinforcement and punishment on behavior.

Aggressive Behavior

Actions meant to harm or intimidate others, driven by feelings of anger and hostility.

Negative Reinforcement

A behavioral principle where the removal of an undesirable or unpleasant outcome after the display of a behavior increases the likelihood of the behavior being repeated in the future.