A Portfolio Has 30% of Its Value in ASX Shares

question 59

Multiple Choice

A portfolio has 30% of its value in ASX shares and the rest in Woodside Petroleum (WPL) . The volatilities of ASX and WPL are 35% and 30%, respectively, and the correlation between ASX and WPL is 0.3. What is the standard deviation of the portfolio?

• A) 29.67%
• B) 26.15%
• C) 30.23%
• D) 22.35%

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Definitions:

Manufacturing Plants

Facilities where goods are produced in large quantities through the combination of workers, machinery, and processes.

Local Market

A market that exists within a specific geographical area, often characterized by face-to-face transactions and the availability of locally produced goods.

Abdominopelvic Cavity

A body cavity consisting of two connected spaces, the abdominal cavity and the pelvic cavity, housing major organs of digestion, reproduction, and excretion.

Thoracic Cavity

The chamber of the human body located between the neck and the abdomen, encased by the ribs, sternum, and vertebral column; it contains the lungs and heart.