A Portfolio Is Equally Weighted

question 43

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:

Power Pivot

An Excel feature that allows users to perform powerful data analysis and create sophisticated data models.

Add to Data Model

The action of incorporating data into a structured format suitable for analysis, often used in database management and analytics software.

Power Pivot Tab

A feature in Microsoft Excel that allows users to perform powerful data analysis and create sophisticated data models within their spreadsheets.

NPER Function

A financial function in spreadsheet software that calculates the number of periods for an investment based on constant, periodic payments and a constant interest rate.