The Standard Deviation of a Portfolio That Has 40% of Its

question 56

Multiple Choice

The standard deviation of a portfolio that has 40% of its value invested in a risk-free asset and 60% of its value invested in a risky asset with a standard deviation of 30% is

• A) 18%.
• B) 14%.
• C) 21%.
• D) 24%.
• E) 20%.

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Definitions:

Motorcycle Clubs

Social organizations of individuals who are enthusiasts of motorcycle riding, often characterized by shared values, rituals, and allegiance to the club's culture.

Collective Behaviour

Actions and behaviors of a group of people who come together and act in a shared way, often spontaneously and without a clear division of roles.

Exponential Growth

A growth rate that becomes ever more rapid in proportion to the growing total number or size.

Innovation

The process of creating new ideas, products, or methods, which improve upon existing standards or introduce novel solutions.