What Is the Standard Deviation of a Portfolio Which Is

question 107

Multiple Choice

What is the standard deviation of a portfolio which is invested 20% in share A,30% in share B and 50% in share C?
$\begin{array}{|l|l|l|l|l|} \hline& & \begin{array}{l}\text { Returns if } \\\text { State } \\\text { Occurs }\end{array}& &{} \\\hline \text { State of Economy } & \text { Probability of State of Economy } & \text { ShareA } & \text { ShareB } & \text { Share C } \\\hline \text { Boom } & 10 \% & 15 \% & 10 \% & 5 \% \\\hline \text { Normal } & 70 \% & 9 \% & 6 \% & 7 \% \\\hline \text { Recession } & 20 \% & -14 \% & 2 \% & 8 \%\\\hline\end{array}$

• A)0.6%
• B)0.9%
• C)1.8%
• D)2.2%
• E)4.9%

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The initial phase of the stress response, where the body recognizes danger and prepares to deal with the threat.

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The process of evaluating a situation in relation to personal well-being, which plays a role in determining the emotional reaction to the situation.

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A therapy technique in cognitive behavioral therapy that aims to help individuals identify and challenge irrational or maladaptive thoughts and replace them with more adaptive ones.

Activating event

In cognitive behavioral therapy, an event that triggers a cognitive or emotional response, leading to specific behavioral outcomes.