A Portfolio Has 50% of Its Value in ASX Shares

question 20

Multiple Choice

A portfolio has 50% of its value in ASX shares and the rest in Woodside Petroleum (WPL) . The volatilities of ASX and WPL are 39% and 35%, respectively, and the correlation between ASX and WPL is 0. What is the standard deviation of the portfolio?

• A) 37.5%
• B) 22..7%
• C) 26.2%
• D) 29.5%

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Definitions:

Group Size

Refers to the number of individuals constituting a group, affecting dynamics such as cohesion, participation, and overall behavior within the group.

Social Comparison Theory

A psychological theory proposing that individuals determine their own social and personal worth based on how they stack up against others.

Mob Violence

Aggressive behavior by a large group of people, often spontaneous and with the intention to cause harm or destruction.

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The mental discomfort experienced by a person who holds two or more contradictory beliefs, values, or ideas simultaneously.