Instruction 16

question 42

Multiple Choice

Instruction 16.2: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 16.2. 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:

Independent Clause

A clause that can stand alone as a complete sentence because it contains a subject and a predicate and expresses a complete thought.

Active Voice

A sentence structure where the subject performs the action stated by the verb, typically making the writing clearer and more engaging.

Printed Memo

A written message, typically used within an organization, that is distributed in a printed format to convey important information to employees or members.

Formal Communication

Communication that follows established protocols and structures, often within organizational settings, such as reports or official meetings.