What Is the Standard Deviation of a Portfolio of Two

question 1

Multiple Choice

What is the standard deviation of a portfolio of two shares given the following data?
Share A has a standard deviation of 18%. Share B has a standard deviation of 14%. The portfolio contains 40% of Share A and the correlation coefficient between the two shares is -.23.

• A)9.7%
• B)12.2%
• C)14.0%
• D)15.6%

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Definitions:

Food Supplies

Items necessary for the production and provision of food services, including raw ingredients, pre-packaged commodities, and other essential food items.

Retail Items

Products that are purchased by consumers for personal use, usually sold in retail stores or through online platforms.

B2C

An acronym for "Business-to-Consumer," describing transactions conducted directly between a company and consumers who are the end-users of its products or services.

Book to Capital

The ratio of a company's net book value of its assets to its capital, indicating how much of the company's assets are financed by shareholder capital.