Security One Has a Standard Deviation of 6

question 37

Multiple Choice

Security One has a standard deviation of 6. Security Two has a standard deviation of 12. The securities have a coefficient of correlation of .5. Which of the following values is closest to portfolio variance?

• A) 81.
• B) 90.
• C) 27.
• D) 6561.

Analyze the nature vs. nurture debate and its implications on human development.

Understand the principles of ecological systems theory as proposed by Urie Bronfenbrenner.

Grasp the concept of longitudinal research and its significance in studying human development.

Recognize ethical guidelines in research and their importance for participant welfare.

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Definitions:

Volatile

Describes an investment or market that shows frequent and significant price changes over a short period of time.

Nominal Rate of Interest

The rate of interest before adjusting for inflation, reflecting the rate at which money grows over time.

Purchasing Power

A measure of the amount of goods or services that one unit of currency can buy.

Inflation Rate

The annual percentage rate at which the general level of prices for goods and services is rising, eroding purchasing power.