A Stock Portfolio Consists of Two Stocks X and Y

question 106

Multiple Choice

A stock portfolio consists of two stocks X and Y. Their daily closing prices are independent random variables with standard deviations σ_X = 2.51 and σ_Y = 5.22. What is the standard deviation of the sum of the closing prices of these two stocks?

• A)33.55
• B)6.48
• C)7.73
• D)5.79

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Definitions:

Laboratory Conditions Doctrine

A principle in legal or experimental contexts emphasizing the importance of controlled, predictable environments for the accuracy of outcomes or decisions.

Union Campaign

An organized effort by a labor union to gain membership, negotiate better terms for workers, or address issues affecting its members.

NLRB

The National Labor Relations Board is a federal agency responsible for enforcing U.S. labor laws regarding collective bargaining and handling complaints of unfair labor practices.

Union Instrumentality

The perceived effectiveness of labor unions in achieving desired outcomes such as higher wages, job security, and better working conditions for their members.