Stocks D, E and F Have Standard Deviations of 2

question 46

Multiple Choice

Stocks D, E and F have standard deviations of 2 percent, 10 percent and 40 percent, respectively. The correlation coefficients between the stocks are as follows: 0.4 for D and E, -0.4 for D and F, and -0.2 E and F. What is the standard deviation of a portfolio with a mix of 30-30-40 percent in D, E and F?

• A) 15.49%
• B) 13.35%
• C) 14.07%
• D) 19.52%

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Definitions:

Quality Distribution

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Appraiser

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The first individuals or entities to own an item, particularly relevant in contexts like real estate or vehicle sales, indicating items have not been previously sold or used.

New Crankshaft

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