A Portfolio Has 50% of Its Funds Invested in Security

question 77

Multiple Choice

A portfolio has 50% of its funds invested in Security One and 50% of its funds invested in Security Two.Security One has a standard deviation of 8%.Security Two has a standard deviation of 10%.The securities have a coefficient of correlation of .5.Which of the following values is closest to portfolio variance?

• A).0025
• B).0061
• C).0095
• D).0102
• E)One must have covariance to calculate expected value.

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Definitions:

Negative Arousal

A state of being emotionally stimulated in a negative way, such as feeling stressed, angry, or scared, often leading to psychological discomfort.

Cognitive Dissonance

The mental discomfort experienced by an individual who holds two or more contradictory beliefs, ideas, or values.

Brain Regions

Specific areas within the brain, each responsible for different functions such as emotion, thought, movement, and sensation.

Role Playing

An exercise or technique in therapy and training where individuals assume roles to act out particular scenarios in a controlled environment.