Exhibit 6-4
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)

question 56

Multiple Choice

Exhibit 6-4
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S) $\begin{array}{c}\begin{array}{cc}\text { Asset }(\mathrm{A}) & \text { Asset }(\mathrm{B}) \\\hline \mathrm{E}\left(\mathrm{R}_{\mathrm{A}}\right) =10 \% & \mathrm{E}\left(\mathrm{R}_{\mathrm{B}}\right) =8 \% \\\left(\sigma_{\mathrm{A}}\right) =6 \% & \left(\sigma_{\mathrm{B}}\right) =5 \% \\\mathrm{~W}_{\mathrm{A}}=0.3 & \mathrm{~W}_{\mathrm{B}}=0.7\end{array}\\\mathrm{COV}_{\mathrm{AB}}=0.0008\end{array}$
-Refer to Exhibit 6-4. What is the standard deviation of this portfolio?

• A) 5.02%
• B) 3.88%
• C) 6.21%
• D) 4.04%
• E) 4.34%

Understand the relationship between temperament, personality development, and evolutionary psychology.

Identify the core temperaments proposed by Buss and Plomin and their implications on personality.

Understand the legal concepts related to the possession and ownership of personal and real property.

Identify the elements required for a valid gift transaction, including delivery and acceptance.

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Definitions:

General Motors

An American multinational corporation headquartered in Detroit that designs, manufactures, markets, and distributes vehicles and vehicle parts.

Diverse Portfolio

An investment strategy whereby an individual holds a variety of different investments to reduce risk through diversification.

Stock Market

A public market for buying and selling company stock and derivatives at an agreed price.

Risk Reduction

Strategies or measures taken to minimize the potential for loss or harm in investment, business operations, or other endeavors.