Stock J Has a Standard Deviation of 67 Percent and Stock

question 74

Multiple Choice

Stock J has a standard deviation of 67 percent and Stock K has a standard deviation of 51 percent. The correlation between the two stocks is -0.10. What is the standard deviation of a portfolio of the two assets with 35 percent invested in Stock J?

• A) 46.23%
• B) 38.64%
• C) 41.07%
• D) 35.19%
• E) 43.82%

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Definitions:

PREA Laws

Legislation aimed at preventing sexual assault and ensuring accountability in confinement facilities, known formally as the Prison Rape Elimination Act.

Katzenbach Commission

A commission named after Nicholas Katzenbach, established to investigate and propose reforms for the criminal justice system, active in the mid-20th century America.

Oversight

The process of monitoring and reviewing the operations and activities of individuals or organizations to ensure conformity with laws, rules, and standards.

Prison Systems

Organized institutions and structures responsible for detaining individuals convicted of crimes.