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:

Sensorimotor

Pertaining to or involving both sensory and motor activities or functions, often in reference to the integration of sensory input and motor responses.

Motor Cortex

A part of the cerebral cortex tasked with planning, managing, and executing movements done by choice.

Inferior Frontal Cortex

A region of the frontal lobe of the brain that plays a role in language processing and motor control.

Cognitive Development

The process by which an individual's ability to think, understand, and interact with the world evolves over time.