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%

---

Definitions:

Growth of Imports

The increase in the volume or value of goods and services brought into one country from another over a specific period.

Unskilled Laborers

Workers who perform tasks that require minimal specialized training or education.

Unemployment

A situation where an individual who is capable of working and is actively seeking work is unable to find employment.

Income

The amount of money or its equivalent received during a period of time in exchange for labor or services, from the sale of goods or property, or as a profit from financial investments.