Stock X Has a Standard Deviation of 21 Percent Per

question 82

Multiple Choice

Stock X has a standard deviation of 21 percent per year and stock Y has a standard deviation of 6 percent per year.The correlation between stock A and stock B is 0.38.You have a portfolio of these two stocks wherein stock X has a portfolio weight of 42 percent.What is your portfolio standard deviation?

• A) 8.89 percent
• B) 9.85 percent
• C) 10.64 percent
• D) 11.84 percent
• E) 12.92 percent

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Definitions:

Relative Energies

The comparative energy levels of molecules or states, used to predict stability, reactivity, and the distribution of products in chemical reactions.

Conformers

Different spatial arrangements of a molecule that can be converted into one another by rotation around single bonds, without breaking the molecular structure.

HOMO

The Highest Occupied Molecular Orbital, referring to the molecular orbital that contains the highest energy electrons in a molecule.

LUMO

Lowest Unoccupied Molecular Orbital, the lowest energy orbital that can accept an electron.