Stock a Has a Standard Deviation of 15 Percent Per

question 6

Multiple Choice

Stock A has a standard deviation of 15 percent per year and stock B has a standard deviation of 8 percent per year.The correlation between stock A and stock B is .40.You have a portfolio of these two stocks wherein stock B has a portfolio weight of 40 percent.What is your portfolio variance?

• A) 0.01143
• B) 0.01214
• C) 0.01329
• D) 0.01437
• E) 0.01470

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Grasp the concept of new-to-the-world products and their impact on markets.

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