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What Is the Standard Deviation of a Portfolio of Two

question 63

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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.


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Millimeters

A unit of length in the metric system equal to one thousandth of a meter.

Animal Flesh

The muscle and fat tissues of animals, typically used as food by humans or other animals.

Metaphorical Definition

Describing a concept or idea by referring to it as something that is symbolically or figuratively similar.

Literal Meaning

The basic or primary meaning of a word or phrase, without metaphor or exaggeration.

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