A Portfolio Has 25% of Its Value in ASX Shares

question 32

Multiple Choice

A portfolio has 25% 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)13.65%
• B)14.95%
• C)12.17%
• D)13.23%

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Definitions:

Accounts Receivable

The amount due to an enterprise by its clients for delivered goods or services awaiting payment.

ACP

Average Collection Period, a metric indicating the average number of days it takes for a company to receive payments owed by its customers.

Investing Activities

Operations related to buying and selling long-term assets and investments, excluding those considered as cash equivalents.

Financial Analysts

Professionals who evaluate investments, economic trends, and financial statements to help businesses and individuals make informed financial decisions.