Aquaman Stock Has Exhibited a Standard Deviation in Stock Returns

question 71

Multiple Choice

Aquaman Stock has exhibited a standard deviation in stock returns of 0.7, whereas Green Lantern Stock has exhibited a standard deviation of 0.8. The correlation coefficient between the stock returns is 0.1. What is the standard deviation of a portfolio composed of 70 percent Aquaman and 30 percent Green Lantern? Round the answer to five decimal points.

• A) 0.32122
• B) 0.54562
• C) 0.56676
• D) 0.75000

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Definitions:

Process Losses

The inefficiencies that result in diminished productivity or effectiveness within a group’s collaborative efforts.

Punctuated Equilibrium Model

A model of group development that describes how groups with deadlines are affected by their first meetings and crucial midpoint transitions.

First Meetings

Initial encounters between individuals or groups, critical in establishing relationships and setting the tone for future interactions.

Midpoint Transitions

Significant changes or shifts in strategy, approach, or direction that occur at the halfway point of a project or timeframe.