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Aquaman Stock Has Exhibited a Standard Deviation in Share Returns

question 67

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Aquaman Stock has exhibited a standard deviation in share returns of 0.7, whereas Green Lantern Stock has exhibited a standard deviation of 0.8. The correlation coefficient between the share returns is 0.1. What is the standard deviation of a portfolio composed of 70 per cent Aquaman and 30 per cent Green Lantern?

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Definitions:

Anticodon

A sequence of three nucleotides in a tRNA molecule that pairs with a corresponding codon in mRNA during protein synthesis.

Molecules

The smallest chemical units of a substance that retain its chemical properties, consisting of one or more atoms bonded together.

Cilia

Microscopic, hair-like structures that extend from the surface of many animal cells, involved in movement and sensory functions.

Flagella

Long, slender projections from a cell that are primarily used for locomotion, allowing the cell to move through liquid environments.

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