Use the Table for the Question(s) Below

question 64

Multiple Choice

Use the table for the question(s) below.
Consider the following expected returns, volatilities, and correlations:

-Which of the following combinations of two stocks would give you the biggest reduction in risk?

• A) Duke Energy and Wal-Mart
• B) Wal-Mart and Microsoft
• C) Microsoft and Duke Energy
• D) No combination will reduce risk.

---

Definitions:

Instinctual Behavior

Instinctual behavior refers to actions and reactions that are inherent and automatic in living organisms, driven by innate biological responses rather than learned experience.

Cultural Meaning

The significance or interpretation of practices, symbols, languages, and objects specific to a group, shaping their worldview and behavior.

Pluralistic Society

A social system that acknowledges and allows for diversity within cultural, religious, and political practices.

Ethnic Groups

Groups of people who identify with each other based on shared attributes such as culture, language, religion, ancestry, or history.