Stock a 'S Returns Have a Standard Deviation of 0

question 1

Multiple Choice

Stock A 's returns have a standard deviation of 0.5, and stock B's returns have standard deviation of 0.6. The correlation coefficient between A and B 0.5. What is the variance of a portfolio composed of 70 percent Stock A and 30 percent Stock B?

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

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Definitions:

Eat Less

Suggests a dietary approach or recommendation aimed at reducing food intake, often for health, ethical, or environmental reasons.

Presence of Others

The effect that the physical or implied presence of other people can have on an individual's behavior, thoughts, and feelings.

Good Impression

a favorable perception or judgment formed by others based on one's actions, appearance, or communication.

Feminine

A set of attributes, behaviors, and roles traditionally associated with girls and women or considered characteristic of the female gender.