Use the Following Information to Answer the Question(s)below

question 54

Multiple Choice

Use the following information to answer the question(s) below.
Suppose that all stocks can be grouped into two mutually exclusive portfolios (with each stock appearing in only one portfolio) : growth stocks and value stocks.Assume that these two portfolios are equal in size (market value) ,the correlation of their returns is equal to 0.6,and the portfolios have the following characteristics: The risk-free rate is 3.5%.
-The volatility on the market portfolio (which is a 50-50 combination of the value and growth portfolios) is closest to:

• A)13.5%.
• B)15.2%.
• C)17.1%.
• D)19.0%.

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Definitions:

Personal Self-Efficacy

Refers to an individual's belief in their own capacity to execute behaviors necessary to produce specific performance attainments.

Facebook

A widely-used social networking platform that allows users to connect, share, and communicate with friends and family online.

Modeling

The process of learning behaviors, attitudes, or emotional reactions through observing others.

Repeating Behavior

Engaging in the same actions or reactions multiple times, often compulsively or habitually, as a way of coping with stress or achieving desired outcomes.