Consider an Equally Weighted Portfolio That Contains Five Stocks

question 97

Multiple Choice

Consider an equally weighted portfolio that contains five stocks.If the average volatility of these stocks is 40% and the average correlation between the stocks is .5,then the volatility of this equally weighted portfolio is closest to:

• A) 0.17
• B) 0.44
• C) 0.41
• D) 0.19

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Definitions:

General Damages

General damages refer to a monetary compensation awarded in a lawsuit for non-monetary losses, such as pain and suffering or emotional distress.

Punitive Damages

Monetary compensation awarded to a plaintiff, over and above actual damages, intended to punish a defendant for particularly harmful behavior and deter future similar acts.

Right Eye

Referring to the eye located on the right side of a person's face.

Special Damages

Specific damages that would flow from a breach of contract.