What Is the Standard Deviation of a Portfolio with Weights

question 109

Multiple Choice

What is the standard deviation of a portfolio with weights of 60% in security A and the remainder in security B?

• A) 0.5%
• B) 0.9%
• C) 1.5%
• D) 2.3%
• E) 6.4%

---

Definitions:

Market Skimming

A pricing strategy where a firm charges the highest initial price that customers will pay and then lowers it over time as the demand of the first set of customers is satisfied.

Product Innovation

The process of creating new or significantly improved products, enhancing their features, functionality, or design to meet consumer needs or open new markets.

Product Positioning

The process of determining the place a product occupies in consumers' minds relative to competing offerings, focusing on perceptions, impressions, and benefits.

Cost-Volume-Profit Analysis

An accounting methodology used to estimate the impact of varying levels of costs and volume on operational profit.