Stock a Has a Standard Deviation of 15 Percent Per

question 55

Multiple Choice

Stock A has a standard deviation of 15 percent per year and stock B has a standard deviation of 8 percent per year.The correlation between stock A and stock B is .40.You have a portfolio of these two stocks wherein stock B has a portfolio weight of 40 percent.What is your portfolio variance?

• A).01143
• B).01214
• C).01329
• D).01437
• E).01470

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National Debt

The total amount of money that a country’s government has borrowed by issuing securities and not yet repaid.

Export

Goods or services produced in one country and sold to customers in other countries.

Managed Floating Exchange Rate

A foreign exchange policy wherein a country's central bank intervenes to manage its currency's value without a specific or fixed exchange rate target.