A Portfolio Is Equally Weighted

question 88

Multiple Choice

A portfolio is equally weighted.Stock D has a standard deviation of 11.7,percent and Stock E has a standard deviation of 5.9 percent.The securities have a covariance of 0.0254.What is the portfolio variance?

• A)0)012209
• B)0)009006
• C)0)010549
• D)0)008590
• E)0)016993

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Definitions:

Motor Starter

A device that controls the use of electrical power to equipment, specifically to an electric motor, by means of protection and control circuitry.

No-voltage Drop-out

A safety feature in electrical devices that causes them to automatically switch off in the event of a voltage reduction or loss, preventing damage or unsafe conditions.

Two-wire Control

A simplified control circuit configuration that uses two wires for operation, commonly applied in direct ON/OFF control scenarios.

Mechanically Held

Refers to devices or components held in position or operated by mechanical means rather than by electrical power or magnetism.