You Are Considering Investing in a Portfolio Consisting of 40

question 2

Multiple Choice

You are considering investing in a portfolio consisting of 40% Electric General and 60% Buckstar. If the expected rate of return on Electric General is 16% and the expected return on Buckstar is 9%, what is the expected return on the portfolio?

• A) 12.50%
• B) 13.20%
• C) 11.80%
• D) 10.00%

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Definitions:

Social Comparison Theory

A theory suggesting that individuals determine their own social and personal worth based on how they stack up against others.

Our Performance

refers to the execution or accomplishment of work, actions, or tasks by a person or a group, typically evaluated in the context of specific goals or standards.

Group Think Effect

The group think effect is a psychological phenomenon where the desire for group consensus and harmony overrides individuals' ability to critically evaluate alternative viewpoints.

Illusion Of Disagreement

A perception that a disagreement exists when, in fact, parties involved share more common ground than perceived differences.