Your Portfolio Has 25% of Its Value Invested in Bombardier

question 18

Multiple Choice

Your portfolio has 25% of its value invested in Bombardier and the remainder invested in Lululemon.Bombardier stock has a volatility of 30%,while Lululemon stock has a volatility of 18%.If the correlation between Bombardier and Lululemon is 0.2,what is the standard deviation of your portfolio?

• A)16.7%
• B)24%
• C)2.8%
• D)21%
• E)46.1%

---

Definitions:

Justice

A concept of moral rightness based on ethics, rationality, law, natural law, religion, equity, and fairness.

Involuntary Movements

Uncontrolled, often spontaneous movements that can result from neurological disorders, medication side effects, or other diseases.

Prognosis

The predicted course and outcome of a disease, including chances of recovery, based on scientific data and the patient’s condition.

Veracity

Adherence to the truth; accuracy.