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A Portfolio Has 35% of Its Funds Invested in Security

question 65

Multiple Choice

A portfolio has 35% of its funds invested in Security One and 65% of its funds invested in Security Two. Security One has a standard deviation of 6. Security Two has a standard deviation of 12. The securities have a coefficient of correlation of.5. Which of the following values is closest to portfolio variance?


Definitions:

Literal-Minded

The tendency to interpret statements or words in their most basic, explicit sense without considering context or metaphor.

Interpersonal Communication

The process of exchanging information, thoughts, and feelings between individuals through verbal or non-verbal means, fundamental to building and maintaining relationships.

Feedback

Information provided about the results of an action or process, often used as a basis for improvement or adjustment.

Interpersonal Communication

The communication of thoughts, emotions, and ideas among two or more individuals via spoken or unspoken means.

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