A Canadian Plans to Buy 100 Shares of This American

question 58

Multiple Choice

$\begin{array}{|l|r|r|rr} \hline& \text { Expected Return } & \begin{array}{r}\text { Standard Deviation of } \\\text { Return }\end{array} &{\text { Correlation }} \\& & & \text { Coefficients } \\& & & \text { X }& \text {Y} \\\hline \text { Canadian Stock X } & 6 \% & 9 \% & 1.00 & \\\hline \text { American Stock Y } & 4 \% & 8 \% & 0.80 & 1.00\\ \hline\end{array}$

A Canadian plans to buy 100 shares of this American stock for US $20 per share. The current spot rate is C$1.2977 = US $1. Suppose that this investor can sell the stock for US $30 a share a year later. The spot rate at the time of the sale is C$1.3029 = US $1.
-What is the variance of a portfolio with an equal funding between these two stocks?

• A) 0.54%2
• B) 0.84%2
• C) 0.74%2
• D) 0.94%2
• E) 0.65%2

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Definitions:

Male Impotence

The inability to achieve or maintain an erection sufficient for satisfactory sexual performance.

Erectile Difficulties

The incapacity to obtain or sustain an erection adequate for pleasing sexual activity.

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A condition where ejaculation happens sooner than a man or his partner would like during sexual activity.

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Everyday problems or irritations that can contribute to stress.