You Have a Portfolio Which Is Comprised of 30 Percent

question 72

Multiple Choice

You have a portfolio which is comprised of 30 percent of stock A and 70 percent of stock B.What is the portfolio standard deviation?

• A) 4.00 percent
• B) 5.56 percent
• C) 6.06 percent
• D) 6.82 percent
• E) 7.47 percent

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Definitions:

Stock Valued

The process of determining the intrinsic value of a stock based on predictions of future earnings and the company's overall financial health.

Increased

An upward adjustment in quantity, size, intensity, or the like.

Compound-Interest GIC

A Guaranteed Investment Certificate (GIC) that grows by earning interest on the principal and the accumulated interest over time.

Percent Increase

The proportionate growth of a value over time, expressed as a percentage of the initial amount.