Batman Stock Has Exhibited a Standard Deviation in Share Returns

question 17

Multiple Choice

Batman Stock has exhibited a standard deviation in share returns of 0.5, whereas Superman Stock has exhibited a standard deviation of 0.6. The correlation coefficient between the share returns is 0.5. What is the variance of a portfolio composed of 70 per cent Batman and 30 per cent Superman?

• A) 0.1549
• B) 0.2179
• C) 0.4668
• D) 0.5500

---

Definitions:

Cancer

is a disease characterized by the uncontrolled division of abnormal cells in a part of the body, leading to tumor growth and potential spread to other parts.

Memory Cells

Immune cells that remember past infections and can quickly respond to subsequent exposures to the same pathogen.

Antigen

A substance that, when introduced into the body, causes an immune response, often involving the production of antibodies.

Lymphocytes

Granular leukocytes formed in lymphoid tissue. Lymphocytes are generally small. See T Lymphocyte and B Lymphocyte.