A Portfolio Has 10% of Its Value in ASX Shares

question 40

Multiple Choice

A portfolio has 10% of its value in ASX shares and the rest in Woodside Petroleum (WPL) . The volatilities of ASX and WPL are 40% and 20%, respectively, and the correlation between ASX and WPL is 0.5. What is the standard deviation of the portfolio?

• A)21.67%
• B)20.23%
• C)20.30%
• D)21.35%

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Definitions:

Tool Use

The ability to employ objects or implements to perform tasks, which can enhance efficiency, precision, and effectiveness, observed in both humans and some animal species.

Chimpanzees

A species of great ape native to the forests and savannahs of tropical Africa, known for their social behaviors and being closely related to humans.

Primate Endangerment

The threat of substantial decline or extinction faced by various species of primates due to habitat loss, hunting, and other human activities.

Habitat Destruction

The process by which natural habitats are rendered unable to support the species that live there, leading to the displacement or extinction of its inhabitants.