Examlex

Solved

What Is the Standard Deviation of a Portfolio of Two

question 63

Multiple Choice

What is the standard deviation of a portfolio of two stocks given the following data? Stock A has a standard deviation of 30%.Stock B has a standard deviation of 18%.The portfolio contains 60% of stock A and the correlation coefficient between the two stocks is -1.0.


Definitions:

Proximal Goals

Short-term goals that are set as steps towards a longer-term goal, making it easier to track progress and maintain motivation.

Demands Upon Themselves

The expectations or pressures individuals put on themselves, either to achieve certain goals or adhere to specific standards.

Capacity For Change

The active phase of self-regulation; willpower.

Self-Regulation

The process by which an individual controls their behavior, emotions, and thoughts towards achieving long-term goals.

Related Questions