A Portfolio Consists of Securities X and Y in the Proportions

question 28

Multiple Choice

A portfolio consists of Securities X and Y in the proportions of .4 and .6. Security X has a random error standard deviation of 15%; Security Y at 4%. The market standard deviation is 12%; the beta for X is .6; the beta for Y is 1.5. The total portfolio variance is

• A) 173.
• B) 129.
• C) 148.5.
• D) 229.

---

Definitions:

Reuptake

A process by which neurotransmitters are reabsorbed by a neuron after being released into the synaptic cleft, influencing neural communication.

Norepinephrine

A neurotransmitter and hormone involved in the body's fight or flight response, also implicated in mood regulation.

Serotonin

A neurotransmitter that plays a key role in regulating mood, sleep, appetite, and digestion.

Muscle Mass

The total amount of muscle tissue in an individual's body.