Use the Information for the Question(s)below

question 47

Multiple Choice

Use the information for the question(s) below.
Suppose you have $10,000 in cash and you decide to borrow another $10,000 at a 6% interest rate to invest in the stock market.You invest the entire $20,000 in an exchange traded fund (ETF) with a 12% expected return and a 20% volatility.
-Assume that the EFT you invested in returns -10%,then the realized return on your investment is closest to:

• A)-20%.
• B)-10%.
• C)-24%.
• D)-26%.

---

Definitions:

Opponent-process Theory

A psychological and neurological model that explains a wide range of behaviors, including color vision and emotions, by proposing that opposing processes operate within the body to maintain balance.

Young-Helmholtz Theory

A theory of color vision that proposes the eye contains three types of color receptors sensitive to red, green, and blue.

Fovea

The central portion of the retina, where visual acuity (sharpness of vision) is highest.

Cones

Photoreceptor cells in the retina of the eye that function best in relatively bright light and enable the perception of color.