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What Is the Standard Deviation of a Portfolio of Two

question 62

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What is the standard deviation of a portfolio of two stocks given the following data: Stock A has a standard deviation of 30%. Stock B has a standard deviation of 18%. The portfolio contains 60% of stock A, and the correlation coefficient between the two stocks is -1.


Definitions:

Discriminative Stimulus

A stimulus that signals the availability or unavailability of reinforcement or punishment

Generalization Gradients

A depiction of the gradual decrease in the conditioned response as the conditioned stimulus becomes more dissimilar to the original conditioned stimulus.

Variety of Stimuli

A range of external factors or inputs that can provoke different sensory, cognitive, or emotional responses.

Limited Number

Refers to a fixed or restricted quantity, often used in contexts where availability or capacity is constrained.

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