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:

Halo Effects

A cognitive bias where an overall impression of a person, brand, or product influences feelings and thoughts about its properties or related items.

Selective Perception

The process by which individuals interpret or focus on specific stimuli while ignoring others, based on preconceptions or experiences.

Projection

A psychological defense mechanism where an individual ascribes their own undesired feelings or attributes onto others.

Increased Satisfaction

The improvement of contentment and fulfillment experienced by individuals, typically in a work or service context.