Assume the Standard Deviation of the U

question 12

Multiple Choice

Assume the standard deviation of the U.S.market portfolio is 18.2%,the standard deviation of the non-U.S.portion of the world portfolio is 17.1%,and the correlation between the U.S.and non-U.S.market portfolios is .47.Suppose you invest 25% of your money in the U.S.stock market and the other 75% in the non-U.S.portfolio.What is the standard deviation of your portfolio?

• A)16.7%
• B)15.5%
• C)17.1%
• D)18.6%

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Definitions:

Competitiveness

The ability of a company, sector, or economy to provide products or services effectively in comparison to others, often measured by factors like cost, quality, and innovation.

Union Contracts

Agreements negotiated by labor unions and employers defining employment terms, worker benefits, and conditions to ensure fair treatment and equitable wages for union members.

Legally Enforceable

Terms or agreements that can be upheld and imposed by law or in court.

Employees and Employers

The relationship between individuals who provide labor (employees) and those who provide compensation for this labor within an organized work environment (employers).