A portfolio has 40% of its value in IBM shares and the rest in Microsoft (MSFT). The volatility of IBM and MSFT are 40% and 30%, respectively, and the correlation between IBM and MSFT is -0.3. What is the standard deviation of the portfolio?
A) 19.17%
B) 18.16%
C) 22.20%
D) 20.18%
Answer: D
You might also like to view...
Tie-in arrangements are considered to be a violation of the antitrust laws when the:
a. company insisting on the tie-in has monopoly power b. company insisting on the tie-in interferes with pre-existing contracts of the buyer c. buyer interferes with pre-existing contracts of the seller d. buyer is fully integrated vertically e. none of the other choices
Which of the following is a disadvantage of the Net Present Value rule?
A) can be misleading if inflows come before outflows B) not necessarily consistent with maximizing shareholder wealth C) ignores cash flows after the cutoff point D) relies on accurate estimate of the discount rate
Identity management is the integrated set of processes, services, and architectures that provide secure and appropriate access to organization system assets
Indicate whether the statement is true or false
Merl buys a tablet for $500, running shoes for $200, and a set of the Game of Crowns books for $100. To be enforceable as a contract, a writing is required for the purchase of
A) the books, the shoes, and the tablet. B) the shoes and the tablet only. C) the tablet only. D) the books only.