Multiple Choice
Batman Stock has exhibited a standard deviation in share returns of 0.5, whereas Superman Stock has exhibited a standard deviation of 0.6. The correlation coefficient between the share returns is 0.5. What is the variance of a portfolio composed of 70 per cent Batman and 30 per cent Superman?
A) 0.1549
B) 0.2179
C) 0.4668
D) 0.5500
Correct Answer:
Verified
Correct Answer:
Verified
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