A Portfolio Has 45% of Its Value in IBM Shares

question 10

Multiple Choice

A portfolio has 45% of its value in IBM shares and the rest in Microsoft (MSFT) . The volatility of IBM and MSFT are 33% and 35%, respectively, and the correlation between IBM and MSFT is 0. What is the standard deviation of the portfolio?

• A) 19.45%
• B) 27.96%
• C) 34.04%
• D) 24.31%

Comprehend how activity levels impact variable and fixed costs.

Apply the concept of the activity index and its role in cost behavior analysis.

Calculate and interpret the contribution margin ratio and its significance.

Analyze the impact of sales levels on total costs, variable costs, fixed costs, and net income.

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Definitions:

Honesty

The quality of being truthful, fair, and free from deceit or fraud in actions, speech, and intentions.

Personal Agency

The capability of individuals to make choices and to act on these choices in a way that affects their own lives and the world around them.

Proxy

An agent or substitute who acts on behalf of someone else, or a measure that can stand in for or represent something else.

Reciprocal

Mutual or given and received in return; employing mutual exchange between two or more parties.