Stock a Has a Standard Deviation of 12 Percent Per

question 42

Multiple Choice

Stock A has a standard deviation of 12 percent per year and stock B has a standard deviation of 16 percent per year. The correlation between stock A and stock B is .37. You have a portfolio of these two stocks wherein stock B has a portfolio weight of 35 percent. What is your portfolio variance?

• A) .01245
• B) .01314
• C) .01329
• D) .01437
• E) .01470

---

Definitions:

Ethics

The moral choices a person makes.

Organizational Values

Core principles or standards that guide the behavior, decisions, and actions of an organization and its employees.

Individual Values

Personal principles or standards of behavior; one's judgment of what is important in life.

Meaningful Work

Work that is viewed as having significance and purpose by the individual performing it.