Consider the Following Portfolio of Assets: What Is the Standard

question 59

Essay

Consider the following portfolio of assets: What is the standard deviation of the portfolio (round to two decimals)?
A)(0.45)( $\surd$ 36.60) + (0.55)( $\surd$ 76.56) = 7.51%
B)( $\surd$ 36.60) + ( $\surd$ 76.56) = 14.80%
C) $\surd$ 57.28 = 7.57%
D) $\surd$ 25.33 = 5.03%

• A)(0.45)(\( \surd\)36.60) + (0.55)(\( \surd\)76.56) = 7.51%
• B)(\( \surd\)36.60) + (\( \surd\)76.56) = 14.80%
• C)\( \surd\)57.28 = 7.57%
• D)\( \surd\)25.33 = 5.03%

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Definitions:

Pension Funds

Pooled monetary contributions from different individuals or entities to invest in securities, designed to generate future retirement income for participants.

Long-Term Investors

Individuals or entities that hold investments for an extended period, typically with the aim of achieving long-term objectives.

Exit Strategy

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University Endowment Funds

Pools of capital that are donated to universities, which are then invested to generate income for ongoing university expenses and projects.