Exhibit 7.3 The Following Questions Are Based on the Problem Below

question 31

Multiple Choice

Exhibit 7.3
The following questions are based on the problem below.
An investor has $150,000 to invest in investments A and B. Investment A requires a $10,000 minimum investment, pays a return of 12% and has a risk factor of .50. Investment B requires a $15,000 minimum investment, pays a return of 10% and has a risk factor of .20. The investor wants to maximize the return while minimizing the risk of the portfolio. The following minimax formulation of the problem has been solved in Excel.
-Refer to Exhibit 7.3. Which value should the investor change, and in what direction, if he wants to reduce the risk of the portfolio?

• A) D11, increase
• B) D12, increase
• C) C12, increase
• D) D12, decrease

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Definitions:

Transference

A phenomenon in psychotherapy where clients project feelings or attitudes from past relationships onto their therapist.

Primary Caregivers

Individuals who provide the majority of care and nurturing to a child, often parents but can include other adults.

Object Relations

A branch of psychodynamic psychology focusing on how internalized relationships with significant others influence emotions and behavior.

Caregiver Relationships

The dynamics and interpersonal interactions between an individual who provides care and the recipient of care, often involving emotional, physical, and social support.