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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?

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Definitions:

Zygomaticus Major

A facial muscle that draws the mouth upward and outward, majorly involved in smiling.

Depressor Anguli Oris

A facial muscle that is responsible for pulling the corners of the mouth downwards, contributing to a frown expression.

Orbicularis Oris

A circular muscle around the mouth that controls movements such as puckering and closing the lips.

Ansa Cervicalis

A loop of nerves in the neck that innervates some of the muscles responsible for swallowing.

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