Asset 1 Has an Expected Return of 10% and a Standard

question 182

Multiple Choice

Asset 1 has an expected return of 10% and a standard deviation of 20%.Asset 2 has an expected return of 15% and a standard deviation of 30%.The correlation between the two assets is 1.0.Portfolios of these two assets will have an expected return ________.

• A)between 0% and 15%
• B)between 10% and 15%
• C)below 10%
• D)above 15%

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Definitions:

Informational Influence

When people look to others for how to behave in ambiguous situations.

Normative Influence

When people conform to social norms for fear of negative social consequences.

Presence of Others

The phenomenon of how an individual's thoughts, feelings, and behaviors can be influenced by the physical or imagined presence of others.

Helping Behavior

Acts performed with the goal of benefiting another person, regardless of the helper's motives.