Consider the Following Expected Returns, Volatilities, and Correlations: the Volatility

question 45

Multiple Choice

Consider the following expected returns, volatilities, and correlations: The volatility of a portfolio that is equally invested in Wal-Mart and Duke Energy is closest to ________.

• A) 4.0%
• B) 0.7%
• C) 6.7%
• D) 20.1%

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Definitions:

Schemes

In the context of cognitive development, organized patterns of thought or behavior that children use to interact with and understand the world around them.

Cognitive Structures

Mental patterns or frameworks that individuals use to organize and interpret information.

Piaget

Jean Piaget, a Swiss psychologist known for his pioneering work in child development, focusing on how children develop cognitive abilities through stages.

Accommodates

Adapts or adjusts to suit a new condition or environment.