Consider the following portfolio of assets: $$\begin{array} { | c | c | c | c | c | c | }
\hline \text { Loan } i & \text { Weight } i & \text { Expected return i } & \sigma / & \sigma ^ { 2 } & \
\hline 1 & 0.30 & 13 \% & 9.06 \% & 82.0 \% & \mathrm { P } _ { 12 } = - 0.87 \
\hline 2 & 0.70 & 11 \% & 8.72 \% & 76.0 \% & \sigma _ { 12 } = - 75.0 \% \
\hline
\end{array}$$ What is the standard deviation of the portfolio (round to two decimals)?
A)(0.3)$\sqrt{82.00}$ + (0.7)$\sqrt{76.00}$ = 8.82%
B)$\sqrt{82.00}$ + $\sqrt{76.00}$ = 17.77%
C)$\sqrt{15.75}$ = 3.97%
D)$\sqrt{48.93}$ = 6.99%

Question

Consider the following portfolio of assets: $$\begin{array} { | c | c | c | c | c | c | } 
\hline \text { Loan } i & \text { Weight } i & \text { Expected return i } & \sigma / & \sigma ^ { 2 } & \
\hline 1 & 0.30 & 13 \% & 9.06 \% & 82.0 \% & \mathrm { P } _ { 12 } = - 0.87 \
\hline 2 & 0.70 & 11 \% & 8.72 \% & 76.0 \% & \sigma _ { 12 } = - 75.0 \% \
\hline
\end{array}$$ What is the standard deviation of the portfolio (round to two decimals)?
A)(0.3)$\sqrt{82.00}$ + (0.7)$\sqrt{76.00}$ = 8.82%
B)$\sqrt{82.00}$ + $\sqrt{76.00}$ = 17.77%
C)$\sqrt{15.75}$ = 3.97%
D)$\sqrt{48.93}$ = 6.99%

Quizplus · Accepted Answer

The Answer of Consider the following portfolio of assets: $$\begin{array} { | c | c | c | c | c | c | } 
\hline \text { Loan } i & \text { Weight } i & \text { Expected return i } & \sigma / & \sigma ^ { 2 } & \
\hline 1 & 0.30 & 13 \% & 9.06 \% & 82.0 \% & \mathrm { P } _ { 12 } = - 0.87 \
\hline 2 & 0.70 & 11 \% & 8.72 \% & 76.0 \% & \sigma _ { 12 } = - 75.0 \% \
\hline
\end{array}$$ What is the standard deviation of the portfolio (round to two decimals)?
A)(0.3)$\sqrt{82.00}$ + (0.7)$\sqrt{76.00}$ = 8.82%
B)$\sqrt{82.00}$ + $\sqrt{76.00}$ = 17.77%
C)$\sqrt{15.75}$ = 3.97%
D)$\sqrt{48.93}$ = 6.99%

Consider the Following Portfolio of Assets What Is the Standard Deviation of the Portfolio (Round to |