From the Following Information,calculate the Expected Return and Standard Deviation

question 52

Multiple Choice

From the following information,calculate the expected return and standard deviation of a portfolio that consists of 60% of Security A (expected return of 0.10 and standard deviation of 0.03) and 40% of Security B (expected return of 0.20 and standard deviation of 0.05) ,assuming the co-variance between A and B is -0.0012.

• A)E(R)= 0.152,σ = 0.161
• B)E(R)= 0.138,σ = 0.012
• C)E(R)= 0.14,σ = 0.085
• D)E(R)= 0.14,σ = 0.012

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Definitions:

Marijuana

A psychoactive drug from the Cannabis plant used for medical or recreational purposes.

Motor Coordination

The harmonious function of body parts (such as muscles and limbs) enabling smooth and efficient movements.

THC

Tetrahydrocannabinol, the main psychoactive compound in cannabis that produces the "high" sensation.

Hallucinogen

A substance that induces alterations in perception, thinking, and feeling, creating hallucinations.