Stock a Has a Standard Deviation of 15% Per Year

question 79

Multiple Choice

Stock A has a standard deviation of 15% per year and Stock B has a standard deviation of 8% per year. The correlation between Stock A and Stock B is .40. You have a portfolio of these two stocks wherein Stock B has a portfolio weight of 40%. What is your portfolio variance?

• A).01143
• B).01214
• C).01329
• D).01437
• E).01470

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Definitions:

Authoritarian Parents

Parents who adopt a strict disciplinary style with high demands and low responsiveness, often expecting obedience without question.

Permissive-Indulgent Parents

A parenting style characterized by high responsiveness and low demands, where parents are very involved with their children but set few rules and boundaries.

Involved Parents

Parents who actively participate in their child's life and development.

Coregulation

A gradual transferring of control from parent to child, beginning in middle childhood.