You Own Stock a with a Standard Deviation of 48

question 19

Multiple Choice

You own Stock A with a standard deviation of 48% and Stock B with a standard deviation of 35%. As you add more Stock A to your portfolio, the standard deviation of your portfolio will:

• A) always increase.
• B) always decrease.
• C) remain the same.
• D) It depends on the initial weights and the correlation.
• E) Insufficient information.

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Definitions:

Habitual Liars

Individuals who consistently engage in dishonesty or fabrication as a recurring behavior.

Plagiarism

Plagiarism is the act of using someone else's work or ideas without proper attribution, claiming them as one's own.

Cognitive Resources

Mental capacities and assets used in the processing of information and problem-solving.

Polygraph

A device used to measure and record physiological indicators such as heart rate, blood pressure, and skin conductivity while the subject answers questions, aiming to detect lies.