AAFM GLO_CWM_LVL_1 Exam - Topic 3 Question 34 Discussion

Actual exam question for AAFM's GLO_CWM_LVL_1 exam

Question #: 34
Topic #: 3

[All GLO_CWM_LVL_1 Questions]

The Portfolio consists of two securities, X and Y in the ratio of 70:30. Given that

and covariance between them is 16%, what is the portfolio risk?

A13.77%

B8.04%

CNil

D25%

Show Suggested Answer

Suggested Answer: B

by Gary at May 04, 2022, 08:52 AM

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Josphine

4 months ago

Definitely leaning towards option A, feels right!

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Luisa

5 months ago

Wait, how can the risk be nil? That doesn't make sense!

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Afton

5 months ago

Not sure about that, 8.04% seems more realistic.

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Josefa

5 months ago

I think the risk is around 13.77%.

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Svetlana

5 months ago

The portfolio is 70% X and 30% Y.

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Erick

5 months ago

Hmm, I'm a bit confused on this one. I know Vim has different modes, but I'm not sure which character is used for reverse search in Normal mode. I'll have to think this through carefully.

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Annalee

5 months ago

Hmm, I'm a bit confused about the purpose of 'PREPARE' and 'EXECUTE'. I'll need to review my notes on prepared statements to be confident in my answer.

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