AAFM Exam GLO_CWM_LVL_1 Topic 2 Question 48 Discussion

Actual exam question for AAFM's GLO_CWM_LVL_1 exam

Question #: 48
Topic #: 2

Mr. Shyam has a portfolio consisting of two stocks A & B. Stock A has a standard deviation of 5 % while stock B has a standard deviation of 15%. Stock A comprises 40% of the portfolio and Stock B consists of 60%. If the correlation of returns of A& B is .5, the variance of return on the portfolio is _________.

A--0.0035

B--0.0085

C0.0094

D0.0103

Show Suggested Answer

Suggested Answer: D

by Donte at Aug 03, 2022, 04:11 PM

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