Consider an Equally Weighted Portfolio That Contains 20 Stocks

question 99

Multiple Choice

Consider an equally weighted portfolio that contains 20 stocks.If the average volatility of these stocks is 35% and the average correlation between the stocks is .4,then the volatility of this equally weighted portfolio is closest to:

• A).17.
• B).41.
• C).14.
• D).37.

Understand the principles of corporate governance and its impact on strategic planning and implementation.

Understand the importance of aligning organizational strategies with the nature of external environments.

Identify the roles and failures of senior management and strategic leadership in strategic planning.

Recognize key strategic planning pitfalls and their impact on organizational performance.

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Definitions:

Photosynthetic Organisms

Living entities that can convert light energy, usually from the sun, into chemical energy through the process of photosynthesis.

Primary Endosymbiosis

A symbiotic relationship in which a eukaryotic cell engulfs a prokaryote, leading to the evolution of important cell organelles, such as mitochondria and chloroplasts.

Secondary Endosymbiosis

An evolutionary process by which a eukaryotic cell engulfs another eukaryotic cell, leading to a symbiotic relationship.

Mutualism

A type of symbiotic relationship between organisms of different species where both parties benefit from the interaction.