A Portfolio Is Made Up of 75% of Stock 1,and

question 129

Essay

A portfolio is made up of 75% of stock 1,and 25% of stock 2. Stock 1 has a variance of .08,and stock 2 has a variance of .035. The covariance between the stocks is -.001. Calculate both the variance and the standard deviation of the portfolio.

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Stereotyping

The act of ascribing generalized attributes or behaviors to members of a particular group, often based on preconceptions.

Ignoring Information

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Perceptual Mistake

An error in the way sensory information is interpreted or understood, often leading to incorrect judgments or assumptions.

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