If IS and DS Are Combined in a Portfolio with 50

question 24

Multiple Choice

If IS and DS are combined in a portfolio with 50% invested in each,the expected return and risk would be:

• A) 5.625%; 37.2%.
• B) 4.5%; 5.48%.
• C) 8.0%; 8.2%.
• D) 5.0%; 0%.
• E) 4.5%; 0%.

---

Definitions:

Curse Of Knowledge Effect

A cognitive bias that occurs when someone, knowing something, cannot remember or imagine not knowing it, leading to communication challenges.

Negative Emotion

A feeling that is generally considered to be unpleasant or detrimental, such as sadness, anger, or fear.

Social Norms

Informal understandings that govern the behavior of members of a society or group, dictating what is considered acceptable.

Maintain Confidences

The ethical or professional duty to keep certain information private or secret, not disclosing it to unauthorized individuals or entities.