The Expected Return on MSFT Next Year Is 12% with a Standard

question 54

Multiple Choice

The expected return on MSFT next year is 12% with a standard deviation of 20%.The expected return on AAPL next year is 24% with a standard deviation of 30%.The correlation between the two stocks is .6.If James makes equal investments in MSFT and AAPL,what is the expected return on his portfolio.

• A)21.45%
• B)25.00%
• C)4.60%
• D)15.00%

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Definitions:

Clinical Psychologist

A professional specializing in diagnosing and treating mental health disorders through therapy and behavioral interventions.

Counselling Psychologist

A professional in psychology who specializes in offering therapies and techniques for dealing with mental health issues, personal challenges, and life stresses.

Severe Mental Health

Refers to a significant level of dysfunction in mental health conditions that impact an individual's thoughts, feelings, and behaviors.

Psychoanalytic

Pertaining to a theory and therapeutic method developed by Sigmund Freud, focusing on unconscious motivations and conflicts as determinants of human behavior.