Dr. Eller secretly created a crypto portfolio consisting of 38% of Bitcoin and 62% of Ethereum. The standard deviation of Bitcoin is 25% and the variance of Ethereum is 2.89%. If the correlation coefficient is +0.32, the portfolio’s standard deviation is closest to A. 18.78%. B. 16.29%. C. 15.01%. D. 13.82%.
Dr. Eller secretly created a crypto portfolio consisting of 38% of Bitcoin and 62% of Ethereum. The standard deviation of Bitcoin is 25% and the variance of Ethereum is 2.89%. If the correlation coefficient is +0.32, the portfolio’s standard deviation is closest to A. 18.78%. B. 16.29%. C. 15.01%. D. 13.82%.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Dr. Eller secretly created a crypto portfolio consisting of 38% of Bitcoin and 62% of Ethereum. The standard deviation of Bitcoin is 25% and the variance of Ethereum is 2.89%. If the correlation coefficient is +0.32, the portfolio’s standard deviation is closest to
A.
18.78%.
B.
16.29%.
C.
15.01%.
D.
13.82%.
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