Stocks A, B, and C Are Similar in Some Respects

question 131

Multiple Choice

Stocks A, B, and C are similar in some respects: Each has an expected return of 10% and a standard deviation of 25%.Stocks A and B have returns that are independent of one another; i.e., their correlation coefficient, r, equals zero.Stocks A and C have returns that are negatively correlated with one another; i.e., r is less than 0.Portfolio AB is a portfolio with half of its money invested in Stock A and half in Stock B.Portfolio AC is a portfolio with half of its money invested in Stock A and half invested in Stock C.Which of the following statements is CORRECT?

• A) Portfolio AC has an expected return that is greater than 25%.
• B) Portfolio AB has a standard deviation that is greater than 25%.
• C) Portfolio AB has a standard deviation that is equal to 25%.
• D) Portfolio AC has a standard deviation that is less than 25%.
• E) Portfolio AC has an expected return that is less than 10%.

Identify effective strategies for coping with stress in healthcare settings.

Recognize the significance of correctly explaining medical procedures to patients.

Diagnose communication challenges and select appropriate nursing diagnoses.

Understand the formation and purpose of healthcare teams and groups.

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Definitions:

Fishing Reel

A mechanical device attached to a fishing rod used in winding and stowing line.

Worked Alone

Referring to an individual completing a task or a project independently without the collaboration or assistance of others.

Social Psychologists

Researchers who study how an individual’s thoughts, feelings, and behaviors are influenced by the actual, imagined, or implied presence of others.

Conducting Experiments

The process of performing controlled tests or investigations to explore hypotheses and observe outcomes.