Stock a Has a Standard Deviation of 15 Percent Per

question 73

Multiple Choice

Stock A has a standard deviation of 15 percent per year and stock B has a standard deviation of 21 percent per year. The correlation between stock A and stock B is .32. You have a portfolio of these two stocks wherein stock B has a portfolio weight of 60 percent. What is your portfolio standard deviation?

• A) 14.87 percent
• B) 15.59 percent
• C) 16.91 percent
• D) 17.45 percent
• E) 18.03 percent

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Definitions:

Sensory Nerves

Nerves that transmit sensory information from the body's periphery to the central nervous system for processing.

Free Nerve Ending

Sensory receptors found throughout the body that respond to pain, temperature, and touch.

Odorant Molecules

Chemical particles capable of being detected by the sensory neurons in the nose, leading to the perception of smell.

Mucous

A slippery secretion produced by, and covering, mucous membranes, typically serving to protect and lubricate surfaces.