Use the Information to Answer the Following Question(s)

question 21

Multiple Choice

Use the information to answer the following question(s) .
A U.S. investor is considering a portfolio consisting of 60% invested in the U.S. equity index fund and 40% invested in the British equity index fund. The expected returns for the funds are 10% for the U.S. and 8% for the British, standard deviations of 20% for the U.S. and 18% for the British, and a correlation coefficient of 0.15 between the U.S. and British equity funds.
-Refer to Instruction 17.2. What is the standard deviation of the proposed portfolio?

• A)38.00
• B)19.20
• C)19.00
• D)14.45

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Definitions:

Sensory Information

Data received from the environment through the senses, such as sight, sound, smell, touch, and taste.

Place Coding

The perception of higher-pitched sounds that is a result of the location on the basilar membrane where hair cells are stimulated by sound waves of varying higher frequencies.

Temporal

Related to time, either as a dimension in which events occur or pertaining to the temporal bones near the temples on the sides of the skull.

Frequency

In physics, the number of occurrences of a repeating event per unit of time, often measured in Hertz (Hz).