Calculate the Risk (Standard Deviation) of the Following Two-Security Portfolio

question 28

Multiple Choice

Calculate the risk (standard deviation) of the following two-security portfolio if the correlation coefficient between the two securities is equal to 0.5. Variance Weight (in the portfolio)
$\begin{array} { l l l } \text { Variance } & & \text { Weight (in the portfolio) } \\\hline \text { Security A } & 10 & 0.3 \\\text { Security B } & 20 & 0.7\end{array}$

• A) 17.0 percent
• B) 5.4 percent
• C) 2.0 percent
• D) 3.7 percent

---

Definitions:

Hyper-Impulsive Behavior

A behavior pattern marked by acting on impulses without considering the consequences, often seen in various psychiatric conditions.

Humanistic Approaches

Psychological perspectives emphasizing individual potential, self-awareness, and the importance of human values and personal fulfillment.

Positive Change

An improvement or beneficial transformation in individuals, situations, or environments.

Caregivers

Individuals who provide care to those who need assistance due to conditions like old age, sickness, disability, or vulnerability.