Indiana Jones Intends to Form a Portfolio with Two Securities

question 6

Multiple Choice

Indiana Jones intends to form a portfolio with two securities: Virtual and Real.Virtual has an expected return of 25 percent with a standard deviation of 5 percent.Real has an expected return of 12 percent with a standard deviation of 16 percent.The correlation between the two securities is 0.2.What is the portfolio standard deviation if the portfolio has an expected return of 20 percent?

• A) 0.55%
• B) 1.08%
• C) 7.41%
• D) 10.40%

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Definitions:

Computer Assisted Personal Interviewing (CAPI)

A face-to-face interview technique where the interviewer uses a computer or tablet to record responses directly into a database.

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Digital or online spaces where interactions or communications do not occur in real-time, allowing participants to engage at different times.

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Refers to communication that uses all available modes or channels, such as verbal, non-verbal, and written, to convey a message as effectively as possible.