An Investor Has a $100,000 Portfolio of Which $75,000 Has

question 47

Multiple Choice

An investor has a $100,000 portfolio of which $75,000 has been invested in Stock A and the remainder in Stock B. Other characteristics of the portfolio are shown in the accompanying table. The standard deviation of the portfolio is ________.

• A) 9.39 (%)
• B) 14.19 (%).
• C) 88.23 (%)².
• D) 201.41 (%)².

---

Definitions:

Kohlberg

Referring to Lawrence Kohlberg, a psychologist known for his theory of moral development which is based on the concept of moral reasoning.

Moral Development

The process through which individuals develop proper attitudes and behaviors toward other people in society, based on social and cultural norms, laws, and rules.

Preconventional Reasoning

The lowest level in Kohlberg’s theory. At this level, morality is often focused on reward and punishment. The two stages in preconventional reasoning are punishment and obedience orientation (stage 1) and individualism, instrumental purpose, and exchange (stage 2).

Individualism

A theory in society that prioritizes individual freedom over the control of groups or governmental authority.