An Investor Can Design a Risky Portfolio Based on Two

question 31

Multiple Choice

An investor can design a risky portfolio based on two shares, A and B. The standard deviation of return on Share A is 20% while the standard deviation on Share B is 15%. The correlation coefficient between the return on A and B is 0%. The standard deviation of return on the minimum variance portfolio is ________.

• A)0%
• B)6%
• C)12%
• D)17%

---

Definitions:

Reflection

The process of introspectively considering one's experiences, actions, and feelings to gain insights or understandings.

Interview Sessions

Structured interactions or meetings where questions are asked to gather information, opinions, or assess qualifications and characteristics of the interviewee.

Dramatic Body Language

The use of exaggerated movements or gestures to convey emotions or intentions.

Histrionic Personality Disorder

A psychological disorder characterized by a pattern of excessive emotionality and attention-seeking behavior.