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:

Eating Disorders

Mental disorders characterized by abnormal or disturbed eating habits, such as anorexia nervosa or bulimia nervosa, which severely impact health and quality of life.

Mood Disorders

A category of mental health disorders characterized by a significant and persistent disturbance in mood that impacts daily functioning, including Major Depressive Disorder and Bipolar Disorder.

Gender

A social construct that refers to roles, behaviors, activities, and attributes that a given society considers appropriate for men and women.

Eating Disorders

Disorders characterized by abnormal or disturbed eating habits which negatively affect a person’s health.