Consider the following portfolio of assets: $$\begin{array} { | c | c | c | c | c | c | }
\hline \text { Loan } i & \text { Weight } i & \text { Expected return i } & \sigma & \sigma ^ { 2 } & \
\hline 1 & 0.45 & 15 \% & 6.05 \% & 36.60 \% & \mathrm { P } _ { 12 } = - 0.2 \
\hline 2 & 0.55 & 13 \% & 8.75 \% & 76.56 \% & \sigma _ { 12 } = - 4.0 \% \
\hline
\end{array}$$ What is the standard deviation of the portfolio (round to two decimals)?
A)(0.45)( ? 36.60) + (0.55)( ? 76.56) = 7.51%
B)( ? 36.60) + ( ? 76.56) = 14.80%
C) ? 57.28 = 7.57%
D) ? 25.33 = 5.03%

Question

Consider the following portfolio of assets: $$\begin{array} { | c | c | c | c | c | c | } 
\hline \text { Loan } i & \text { Weight } i & \text { Expected return i } & \sigma & \sigma ^ { 2 } & \
\hline 1 & 0.45 & 15 \% & 6.05 \% & 36.60 \% & \mathrm { P } _ { 12 } = - 0.2 \
\hline 2 & 0.55 & 13 \% & 8.75 \% & 76.56 \% & \sigma _ { 12 } = - 4.0 \% \
\hline
\end{array}$$ What is the standard deviation of the portfolio (round to two decimals)?
A)(0.45)( ? 36.60) + (0.55)( ? 76.56) = 7.51%
B)( ? 36.60) + ( ? 76.56) = 14.80%
C) ? 57.28 = 7.57%
D) ? 25.33 = 5.03%

Quizplus · Accepted Answer

The Answer of Consider the following portfolio of assets: $$\begin{array} { | c | c | c | c | c | c | } 
\hline \text { Loan } i & \text { Weight } i & \text { Expected return i } & \sigma & \sigma ^ { 2 } & \
\hline 1 & 0.45 & 15 \% & 6.05 \% & 36.60 \% & \mathrm { P } _ { 12 } = - 0.2 \
\hline 2 & 0.55 & 13 \% & 8.75 \% & 76.56 \% & \sigma _ { 12 } = - 4.0 \% \
\hline
\end{array}$$ What is the standard deviation of the portfolio (round to two decimals)?
A)(0.45)( ? 36.60) + (0.55)( ? 76.56) = 7.51%
B)( ? 36.60) + ( ? 76.56) = 14.80%
C) ? 57.28 = 7.57%
D) ? 25.33 = 5.03%

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