Assume There Is a Fixed Exchange Rate Between the Canadian

question 33

Multiple Choice

Assume there is a fixed exchange rate between the Canadian and U.S.dollar.The expected return and standard deviation of return on the U.S.stock market are 10% and 15% respectively.The expected return and standard deviation of return on the Canadian stock market are 12% and 16% respectively.The covariance of returns between the U.S.and Canadian stock markets is .012.If you invested 50% of your money in the Canadian stock market and 50% in the U.S.stock market,the standard deviation of return on your portfolio would be __________.

• A) 10.96%
• B) 12.25%
• C) 13.42%
• D) 15.50%

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Definitions:

Contractures

The permanent and painful tightening of muscles, tendons, ligaments, or skin that prevents normal movement of the associated body part.

Flexor Muscles

Muscles that decrease the angle between the bones of a joint, thus performing a bending movement, usually found in the limbs.

Muscle Mass Loss

A reduction in the size or quantity of muscle fibers, often associated with aging or inactivity.

Fracturing

The process of breaking or cracking a bone or hard material.