Suppose Frances currently allocates 75% of her portfolio to a diversified group of stocks and 25% of her portfolio to risk-free bonds; that is, she chooses combination D. She wants to reduce the level of risk associated with her portfolio from a standard deviation of 15 to a standard deviation of 5. In order to do so, she must do which of the following? Check all that apply.

A 5% Portfolio Standard deviation will be achieve if Frances invests 25% percents in diversified risky stocks and 75% risk free bonds

Explanation:

Portfolio weights = 25% risk free and 75% diversified risky stocks

Portfolio standard deviation = 15%

Portfolio Standard Deviation = weight of risky stocks x Total standard deviation

15% = 0.75 x total standard deviation

total standard deviation = 15%/0.75 = 20%

5% = Portfolio weight x 20%

total standard deviation = 5%/20% = 0.25 = 25%

A 5% Portfolio Standard deviation will be achieve if Frances invests 25% percents in diversified risky stocks and 75% risk free bonds

answer; /// that is so (false);

ans.

heterothermic organisms include those organisms that can switch between homeothermic (having body temperature higher than environment) and poikilothermic (having variation in internal body temperature) strategies.

some migratory birds show heterothermy as they decrease their metabolic rate during cold nights to keep their body temperature low. drop in metabolic rate allows increase in production efficiency of birds that reduces the internal body temperature to make it equal to external cold temperature during cold nights.

thus, the correct answer is 'birds allow their temperature drop in order to increase their production efficiency.'