A Stock Portfolio Consists of Two Stocks X and Y

question 17

Multiple Choice

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?

• A)33.55
• B)6.48
• C)7.73
• D)5.79

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