Your Portfolio Has 20% of Its Value Invested in Bombardier

question 31

Multiple Choice

Your portfolio has 20% of its value invested in Bombardier and the remainder invested in Lululemon.Bombardier stock has a volatility of 15%,while Lululemon stock has a volatility of 12%.If the correlation between Bombardier and Lululemon is 0,what is the standard deviation of your portfolio?

• A)12.6%
• B)10%
• C)1%
• D)12.7%
• E)12%

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Definitions:

Labor Productivity Growth

An increase in the amount of goods and services produced per hour worked by employees, which is a key determinant of economic growth and competitiveness.

Labor-Capital Ratio

The ratio of labor inputs to capital inputs in production, reflecting the relationship between the workforce and machinery or capital assets.

Physical Capital

The stock of tangible assets, like machinery, buildings, and vehicles, used in the production of goods and services.

Labor Productivity

An economic indicator that assesses how many goods and services are produced in comparison to the total hours worked to produce them.