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A Portfolio Is Composed of Two Stocks, a and B

question 13

Multiple Choice

A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 35%, while stock B has a standard deviation of return of 15%. The correlation coefficient between the returns on A and B is .45. Stock A comprises 40% of the portfolio, while stock B comprises 60% of the portfolio. The standard deviation of the return on this portfolio is ________.


Definitions:

Candidates'

Belonging to individuals who are applying for a position or running in an election.

Promises

Statements or declarations by which a person commits to doing or not doing something in the future.

Procedure

A set of actions or steps taken in order to achieve a particular end, often standardized and systematic.

Minutes

The official written record of the proceedings and decisions made during a meeting.

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