Consider the Following Expected Returns, Volatilities, and Correlations

question 4

Multiple Choice

Consider the following expected returns, volatilities, and correlations:

The volatility of a portfolio that is equally invested in Wal-Mart and Duke Energy is closest to ________.

• A) 4.0%
• B) 0.7%
• C) 6.7%
• D) 20.1%

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Definitions:

Behavioural Approach

A psychological perspective focusing on observable behaviors, emphasizing the role of learning and environment in shaping behavior.

Strengths

The qualities or attributes that are considered to be positive and beneficial, contributing to effectiveness and success.

Weaknesses

Characteristics or areas that lack strength or ability, often leading to vulnerability or ineffective performance.

Humanistic Theorists

Psychologists who emphasize an individual's inherent drive towards self-actualization and creativity.