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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Unfamiliar

Describes something or someone not known or recognized by a person.

Cognitive Development

The process of growth and change in intellectual/mental abilities such as thinking, reasoning, and understanding over the course of a person’s life.

Socio-Emotional

Pertaining to the interplay between social interactions and emotional responses, affecting an individual's development and well-being.

Moral

Pertaining to principles of right and wrong behavior, and the goodness or badness of human character.