An open-end investment company is commonly known as a mutual fund

Indicate whether the statement is true or false

T

Business

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Given the following information on securities E and F, calculate the expected return and standard deviation of returns on a portfolio consisting of 40% invested in E and 60% invested in F.

Security E

Security F

Expected Return

12%

15%

Standard Deviation of Returns

10%

20%

Correlation coefficient of returns

                 –0.50

a. 13.5%; 8.7%
b. 13.8%; 10.6%
c. 13.5%; 15%
d. 13.8%; 14.4%

Business

A college professor wants to find if students in the U.S. colleges will find the new textbook that he has written to be useful and interesting. He decides to sample all marketing majors at the school he teaches. He believes that this group of students will be representative of the U.S. college student population. His method of sampling is most probably:

a. census sampling. b. convenience sampling. c. judgment sampling. d. quota sampling e. cluster sampling.

Business