Practice Test: Portfolio Pair Outputs in the Covariance Workbook
A practice test on the reported statistics for portfolios AB, CD, and EF.
9 questions · pass mark 50% · try 5 free
1 What weights are used for Portfolio AB?
- 25% and 75%
- 40% and 60%
- 50% and 50%
- 60% and 40%
The workbook shows WA = 50% and WB = 50% for Portfolio AB.
2 What is the reported covariance of Portfolio AB?
- 0.0002
- 0.00058
- -0.00172
- 0.2599
Portfolio AB is reported with CovAB = 0.0002.
3 What is the reported correlation of Portfolio CD?
- 0.2599
- 0.96
- -1.18
- 0.00058
The workbook reports CorrCD = 0.96.
4 Portfolio EF has a negative reported covariance.
- True
- False
The workbook shows CovEF = -0.00172, which is negative.
5 What is the expected return of Portfolio AB?
- 4.25%
- 12.75%
- 55.63%
- 23.25%
The workbook reports E[RAB] = 12.75%.
4 more questions in this test
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