Stock a Has a Standard Deviation of 15 Percent Per

question 58

Multiple Choice

Stock A has a standard deviation of 15 percent per year and stock B has a standard deviation of 21 percent per year.The correlation between stock A and stock B is .30.You have a portfolio of these two stocks wherein stock B has a portfolio weight of 60 percent.What is your portfolio standard deviation?

• A)14.87 percent
• B)15.50 percent
• C)16.91 percent
• D)17.45 percent
• E)18.03 percent

---

Definitions:

Population Mean

The population mean is the average of all the values in a population. It is a measure of central tendency that summarises the characteristic of the entire population.

Magnetic Resonance Imaging (MRI)

A medical imaging technique used in radiology to form pictures of the anatomy and the physiological processes of the body.

Ligament Sprains

Injuries involving the overstretching or tearing of the ligaments, the fibrous tissues that connect bones and stabilize joints.

Consecutive Patients

Patients admitted to a healthcare facility or undergoing a specific treatment one after another without interruption.