Use the Table for the Question(s)below

question 87

Multiple Choice

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

-Which of the following combinations of two stocks would give you the biggest reduction in risk?

• A)Metcash and Data#3
• B)Data#3 and Webjet
• C)Webjet and Metcash
• D)No combination will reduce risk.

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Definitions:

First-born

A term denoting the first child born to a parent or parents, often discussed in the context of birth order effects on personality and development.

Styles of Life

Refers to Alfred Adler's concept of individual patterns of behavior and attitudes that develop as a result of interactions between one's unique environment and genetic disposition.

Dominant Type

Refers to a personality style characterized by assertiveness, competitiveness, and a tendency to seek control over situations and others.

Social Interest

A concept in Adlerian psychology referring to an individual's attitude towards and concern for the welfare of others.