Question

The weighted average of the standard deviations of the assets in Portfolio C is 12.9%. Which of the following are possible values for the standard deviation of the portfolio?

a) 10.9%
b) 14.9%
c) 12.9%
d) None of the above

Answer 1

The possible values for the standard deviation of the portfolio are 10.9%, 14.9%, and 12.9%.

Step-by-step explanation:

To find the possible values for the standard deviation of the portfolio, we need to consider that the weighted average of the standard deviations of the assets in Portfolio C is 12.9%. The standard deviation of a portfolio is calculated using the weighted average of the standard deviations of the assets in the portfolio. In this case, since the weighted average is 12.9%, any value that is close to this average can be a possible value for the standard deviation of the portfolio. Therefore, the possible values for the standard deviation of the portfolio can be a) 10.9% b) 14.9% c) 12.9% d) None of the above.