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?

• A) .095; .001675.
• B) .095; .0072.
• C) .100; .00849.
• D) .090;.0081.

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Definitions:

Louis XIV

Known as the "Sun King," he was King of France from 1643 to 1715 and is noted for his centralized administration and lavish court at Versailles.

Personal Power

The ability of an individual to influence others and control their own life, often deriving from personal traits, skills, or positions of informal authority rather than formal hierarchical structures.

Grand Strategy

A comprehensive, overarching plan or policy designed to achieve major or overall objectives, particularly in politics or business.

Louis XIV

King of France from 1643 to 1715, known as the Sun King, he ruled for the longest time in European history and significantly influenced the course of French absolutism.