A Portfolio Has 50% of Its Funds Invested in Security

question 9

Multiple Choice

A portfolio has 50% of its funds invested in Security One and 50% of its funds invested in Security Two.Security One has a standard deviation of 6%.Security Two has a standard deviation of 12%.The securities have a coefficient of correlation of 0.5.Which of the following values is closest to portfolio variance?

• A).0027
• B).0063
• C).0095
• D).0104
• E)One must have covariance to calculate expected value.

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Definitions:

Minority Group Members

Individuals who belong to a segment of the population that differs from the majority in racial, ethnic, sexual orientation, or other characteristics, often facing disparities in treatment or opportunities.

Retaining

The act of keeping or maintaining possession, condition, or position of something or someone.

Advancement

Progress or development in personal, professional, or societal contexts, often involving moving to a higher or more complex level.

Diversity Initiative

Programs or policies implemented within organizations to promote and appreciate diversity in the workplace.