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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