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A Stock Portfolio Consists of Two Stocks X and Y

question 17

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A stock portfolio consists of two stocks X and Y.Their daily closing prices are independent random variables with standard deviations σX = 2.51 and σY = 5.22.What is the standard deviation of the sum of the closing prices of these two stocks?


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Business Loan

A loan specifically intended for business purposes, providing the necessary capital for start-up or expansion.

Prime Rate

The interest rate that commercial banks charge their most credit-worthy customers, often used as a reference point for various types of loans.

Rate Of Interest

The percentage at which interest is charged or paid over a specific period of time on borrowed or saved money.

Unsecured Loan

A loan that is issued and supported only by the borrower's creditworthiness, without any collateral.

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