A Margin User Has a Proportion 1

question 16

Multiple Choice

A margin user has a proportion 1.3 invested in the risky portfolio that has .4 in A with an expected return of 14%; .6 in B with an expected return of 18%. If the riskfree rate is 5%, her expected return is

• A) 21.3%.
• B) 16.4%.
• C) 19.8%.
• D) 18.2%.

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Definitions:

Brightness

A visual perception that describes how light or dark a color appears; can also refer to the intensity of light.

Difference Threshold

The minimal detectable difference needed to discriminate between two stimuli.

Auditory Convergence

The integration of sound information from both ears at certain points in the auditory pathway, enhancing sound localization and processing.

Refractory Threshold

The refractory threshold is the period following an action potential during which a neuron is incapable of firing another action potential or the threshold is significantly increased.