Assume There Is a Fixed Exchange Rate Between the Canadian

question 29

Multiple Choice

Assume there is a fixed exchange rate between the Canadian and U. S. dollar. The expected return and standard deviation of return on the U. S. stock market are 18% and 15%, respectively. The expected return and standard deviation on the Canadian stock market are 13% and 20%, respectively. The covariance of returns between the U. S. and Canadian stock markets is 1.5%.
-If you invested 50% of your money in the Canadian stock market and 50% in the U.S.stock market,the standard deviation of return of your portfolio would be __________.

• A)12.53%
• B)15.21%
• C)17.50%
• D)18.75%
• E)none of the above

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Definitions:

Terminal Period

The final stage of life, often referring to the time when an individual is facing death imminently, focusing on palliative care and end-of-life issues.

Primary Deterioration

Refers to the original or main worsening of a condition or situation, before any secondary effects or complications.

Gender Ratio

The proportional relationship between males and females in a given population.

Senescence

Period of the life span marked by declines in physical functioning usually associated with aging; begins at different ages for different people.