Indiana Jones Intends to Form a Portfolio with Two Securities

question 48

Multiple Choice

Indiana Jones intends to form a portfolio with two securities: Virtual and Real.Virtual has an expected return of 25.0% with a standard deviation of 5.0%.Real has an expected return of 12.0% with a standard deviation of 16.0%.The correlation between the two securities is 0.2.What is the portfolio standard deviation if the portfolio has an expected return of 20.0%?

• A)0.55%
• B)1.08%
• C)7.41%
• D)10.40%

---

Definitions:

Attractive Babies

Infants perceived as physically appealing, often eliciting positive social responses and caretaking behaviors from others.

More Attention

The concept that certain stimuli or individuals gain increased focus from others due to their inherent qualities or the context in which they are presented.

Gain-Loss Theory

A theory of attraction which posits that liking is highest for others when they increase their positivity toward you over time.

Positivity

An outlook or disposition characterized by optimism, hope, and a focus on good aspects of a situation.