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What Is the Standard Deviation of an Equally Weighted Portfolio

question 45

Multiple Choice

What is the standard deviation of an equally weighted portfolio of two stocks with a covariance of 0.009, if the standard deviation of the first stock is 15% and the standard deviation of the second stock is 20%?

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Definitions:

Incidental Damages

Compensation for unforeseen damages that occur as a secondary effect of a breach of contract.

Resell

The act of selling an item or asset previously bought, typically for profit.

Public Sale

An auction or sale of goods or assets that is open to the general public and conducted by a legal or governmental authority.

Private Sale

is a transaction where goods, assets, or shares are sold directly from one party to another without public auction or market trading.

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