Consider a 2 Asset Portfolio with 60% in Google Inc

question 8

Multiple Choice

Consider a 2 asset portfolio with 60% in Google Inc.(GOOG) and 40% in John Deere (DE) .Google has a standard deviation of 60%,John Deere has a standard deviation of 45% and their correlation is 0.2.What is the standard deviation of returns of the portfolio?

• A) 38.33%
• B) 43.35%
• C) 45.25%
• D) 50.00%
• E) 52.50%

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Definitions:

Actual Indirect Factory Wages

This represents the wages paid to workers who are not directly involved in production but support the manufacturing process.

Budgeted Amounts

Financial plans that project income, expenditures, and allocations for a specific period, often used for control and decision-making purposes.

Actual Production

The real, quantifiable amount of goods or services produced by a company within a specific period.

Fixed Factory Overhead Volume Variance

A measure used in managerial accounting to assess the difference between the budgeted and the actual volume of production, affecting fixed overhead costs.