Use the Table for the Question(s)below

question 69

Multiple Choice

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

-The expected return of a portfolio that consists of a long position of $10,000 in Wal-Mart and a short position of $2000 in Microsoft is closest to:

• A)21%
• B)12%
• C)27%
• D)18%
• E)24%

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Definitions:

Intellect Motive

A drive to engage in mental activities and challenges that are expected to enrich one's knowledge or understanding.

Thematic Apperception Test

A projective psychological test involving the presentation of ambiguous images to a subject, who is asked to tell a story about each image.

Motives

Internal processes that energize, direct, and sustain behavior toward achieving a particular goal or fulfillment.

Crystallized Intelligence

A form of intelligence that involves the ability to use learned knowledge and experience.