Assume That You Are Considering a Portfolio of Two Assets,A

question 36

Multiple Choice

Assume that you are considering a portfolio of two assets,A and B,with 40% invested in asset A and invested 60% in asset B.Assume also that the assets have the following statistics:

The portfolio expected return is ________ and the variance of the portfolio is _______.

• A) Return = 20%
• B) Return = 18%
• C) Return = 17%
• D) Return = 16%

---

Definitions:

Durable Power

Refers to a durable power of attorney, a legal document that grants someone the authority to act on another's behalf, even if the grantor becomes incapacitated.

Medical Decisions

The process of making choices related to health care by patients, often involving considerations of various treatment options.

Executed

A term applied to a contract whose terms have all been fully performed.

Implied Trust

A trust created by a court when (1) an express trust fails and the court can imply the existence of a trust from certain behavior or (2) the law steps in to protect someone from fraud or other wrongdoing.