Charlie and Lucinda Each Have $50,000 Invested in Stock Portfolios

question 62

Multiple Choice

Charlie and Lucinda each have $50,000 invested in stock portfolios. Charlie's has a beta of 1.2, an expected return of 10.8%, and a standard deviation of 25%. Lucinda's has a beta of 0.8, an expected return of 9.2%, and a standard deviation that is also 25%. The correlation coefficient, r, between Charlie's and Lucinda's portfolios is zero. If Charlie and Lucinda marry and combine their portfolios, which of the following best describes their combined $100,000 portfolioσ

• A) the combined portfolio's beta will be equal to a simple weighted average of the betas of the two individual portfolios, 1.0; its expected return will be equal to a simple weighted average of the expected returns of the two individual portfolios, 10.0%; and its standard deviation will be less than the simple average of the two portfolios' standard deviations, 25%.
• B) the combined portfolio's expected return will be greater than the simple weighted average of the expected returns of the two individual portfolios, 10.0%.
• C) the combined portfolio's standard deviation will be greater than the simple average of the two portfolios' standard deviations, 25%.
• D) the combined portfolio's standard deviation will be equal to a simple average of the two portfolios' standard deviations, 25%.
• E) the combined portfolio's expected return will be less than the simple weighted average of the expected returns of the two individual portfolios, 10.0%.

Compare and contrast different psychological perspectives on personality development, including psychodynamic, humanistic, and social cognitive views.

Understand the basic concepts of psychoanalytic theory, including the id, ego, and superego.

Describe Freud's stages of psychosexual development.

Recognize the defense mechanisms in psychoanalytic theory.

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Definitions:

Krebs Cycle

A series of enzymatic reactions in the mitochondria of cells that oxidize acetyl CoA to carbon dioxide and water, generating ATP and other high-energy compounds.

Spiracles

Small openings on the surface of some animals, especially insects, which lead to the respiratory system, allowing for gas exchange.

Ventilation

The process of actively moving air or water over a respiratory surface.

Tracheal Tubes

Air-conducting tubes in the respiratory systems of some invertebrates, notably insects, facilitating gas exchange.