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%

---

Definitions:

Vision

The ability to interpret the surrounding environment by processing information contained in visible light reaching the eyes.

Fovea

A small area at the center of the retina that provides the clearest and sharpest vision because it has the largest concentration of cones.

Visual Accommodation

The ability of the eye to change its focus from distant to near objects (and vice versa) by changing the lens shape.

Fixation

Arrested development at a psychosexual stage occurring because of excessive gratification or frustration at that stage.