Use the Table for the Question(s) Below

question 97

Multiple Choice

Use the table for the question(s) below.
Consider the following expected returns, volatilities, and correlations:

-The volatility of a portfolio that is consists of a long position of $10000 in Wal-Mart and a short position of $2000 in Microsoft is closest to:

• A) 9%
• B) 14%
• C) 11%
• D) 12%

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Definitions:

Hit

In cognitive psychology, correctly identifying a stimulus from a set of alternatives in memory tasks; in sports, making successful contact with the target.

Just Noticeable Difference

The minimal change in stimulus intensity required to detect a difference between two stimuli, according to psychophysical research.

Visual Acuity

The sharpness or clarity of vision, often measured by the ability to discern letters or numbers at a given distance according to a standardized chart.

Absolute Threshold

The minimum level of stimulus intensity needed for a stimulus to be perceived or detected at least half the time by an observer.