A Portfolio Has 25% of Its Funds Invested in Security

question 31

Multiple Choice

A portfolio has 25% of its funds invested in Security C and 75% of its funds invested in Security D. Security C has an expected return of 8% and a standard deviation of 6%. Security B has an expected return of 10% and a standard deviation of 10%. The securities have a coefficient of correlation of.6. Which of the following values is closest to portfolio return and variance?

• A) .095; .001675.
• B) .095; .0072.
• C) .100; .00849.
• D) .090;.0081.

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Definitions:

Performance Objectives

Specific goals related to the output or outcome expected from an employee's work, often used for evaluation and improvement purposes.

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The process of allocating incentives and compensations to employees based on their performance, contribution, or position within an organization.

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A process where stakeholders or employees are actively involved in the planning of projects or organizational changes, ensuring inclusion and diverse input towards decision-making.

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