A Portfolio Has 40% of Its Value in ASX Shares

question 56

Multiple Choice

A portfolio has 40% of its value in ASX shares and the rest in Woodside Petroleum (WPL) . The volatilities of ASX and WPL are 40% and 30%, respectively, and the correlation between ASX and WPL is -0.3. What is the standard deviation of the portfolio?

• A) 22.17%
• B) 18.65%
• C) 20.18%
• D) 19.95%

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Definitions:

Sensorimotor Stage

This is the first stage of Jean Piaget's theory of cognitive development, where infants learn about the world through their senses and actions.

Concrete Operations

A stage in Piaget's theory of cognitive development where children aged 7-11 start thinking logically about concrete events but still struggle with abstract concepts.

Formal Operations

A stage in Piaget's theory of cognitive development (beginning around age 12) where individuals develop the ability to think about abstract concepts and logically test hypotheses.

Deferred Imitation

A cognitive ability where an individual can replicate an action or behavior after a delay or pause, indicating memory and understanding.