Stock a Has a Standard Deviation of 15% Per Year

question 64

Multiple Choice

Stock A has a standard deviation of 15% per year and Stock B has a standard deviation of 21% per year. The correlation between Stock A and Stock B is .30. You have a portfolio of these two stocks wherein Stock B has a portfolio weight of 60%. What is your portfolio standard deviation?

• A)14.87%
• B)15.50%
• C)16.91%
• D)17.45%
• E)18.03%

Appreciate the significance of effective problem-solving and critical thinking skills in various life aspects.

Recognize the role of positive attitudes and resilience in overcoming setbacks.

Understand the importance of consistency and persistence in personal development efforts.

Understand the nuances and requirements for notifying creditors in business transactions and terminations.

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Definitions:

Reinforcer

Any stimulus that strengthens or increases the likelihood of a specific response or behavior by being presented immediately after that response or behavior.

Respondent Behavior

behavior that occurs as a direct response to a specific stimulus, often without conscious decision, in classical conditioning.

Superstitious Behavior

Actions based on irrational beliefs that certain actions or events can influence outcomes in a way not justified by reason or science.

Functional Relationships

Relationships based on practical or beneficial interactions between entities, often analyzed in psychology and sociology for understanding dynamics.