If the Client in Question 13 Changes the Asset Allocation

question 9

Multiple Choice

If the client in question 13 changes the asset allocation to 60% in the fund, what is the portfolio's standard deviation?

• A) 12%
• B) 24%
• C) 18%
• D) 28%

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Definitions:

Zero-balance Account

A banking arrangement where a company’s bank account is maintained at a zero balance, with funds being transferred from a master account as needed.

Disbursement Purpose

The specific reason or objective for which funds are paid out or disbursed in a financial transaction.

Cheques Presented

Refers to the cheques that have been submitted to a bank for payment and are pending clearance.

Money Market Account

A type of savings account that typically offers higher interest rates, with some restrictions on withdrawal.