Stock X Has a Standard Deviation of Return of 10

question 30

Multiple Choice

Stock X has a standard deviation of return of 10 percent. Stock Y has a standard deviation of return of 20 percent. The correlation coefficient between the two stocks is 0.5. If you invest 60 percent of your funds in stock X and 40 percent in stock Y, what is the standard deviation of your portfolio?

• A)10.3 percent
• B)21.0 percent
• C)12.2 percent
• D)14.8 percent

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Definitions:

End-use Segmentation

A marketing strategy that involves dividing the market based on how consumers intend to use the product.

Interpersonal Determinants

Factors that influence social interaction and relationships, including communication skills, attitudes, and behavioral patterns.

Motivational Influences

Factors that drive an individual to act or behave in a certain way, often related to the fulfillment of needs, desires, or goals.

Cultural Influences

The impact of societal norms, values, beliefs, and practices on an individual's behavior, perceptions, and decisions.