The Risk Free Rate, Average Returns, Standard Deviations and Betas

question 48

Multiple Choice

The risk free rate, average returns, standard deviations and betas for three funds and the S&P500 are given below.
-If these portfolios are subcomponents which make up part of a well diversified portfolio then portfolio ______ is preferred.

• A) A
• B) B
• C) C
• D) S&P500

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Definitions:

Symbolic Thinking

The ability to use symbols, words, or objects to represent something that is not physically present.

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or otherwise sensed, typically developed during infancy.

Conservation

The protection and preservation of natural resources, environments, or cultural heritage.

Lateralization

Refers to the specialization of the left and right hemispheres of the brain for different tasks and functions.