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A Portfolio Has 25% of Its Funds Invested in Security

question 31

Multiple Choice

A portfolio has 25% of its funds invested in Security C and 75% of its funds invested in Security D. Security C has an expected return of 8% and a standard deviation of 6%. Security B has an expected return of 10% and a standard deviation of 10%. The securities have a coefficient of correlation of.6. Which of the following values is closest to portfolio return and variance?

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Definitions:

Tropomyosin

Fibrous protein found as a component of the actin myofilament.

Fibrous Actin

Filamentous actin, part of the cytoskeleton in cells, involved in various types of cell movement and the maintenance of cell shape.

Thick Myofilaments

Components of the muscle fiber responsible for muscle contraction, composed primarily of the protein myosin.

Myosin Molecules

Motor proteins involved in muscle contraction and movement by interacting with actin fibers within muscle cells.

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