Consider a Portfolio with Three Stocks,each with the Same Value

question 72

Multiple Choice

Consider a portfolio with three stocks,each with the same value.The three stocks have standard deviations of 20%,40%,and 90%.The standard deviation of this portfolio is

• A) no greater than 50%.
• B) less than 20%.
• C) exactly 40%.
• D) more than 90%.

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Definitions:

Consignment Goods

Goods that are given to a third party to sell, but ownership remains with the supplier until the goods are sold.

Consignee

A consignee is the individual or entity to whom goods are shipped to be sold or cared for, but the ownership of those goods remains with the consignor until sold.

Inventory Reporting

The process of documenting the quantity and value of a company's stock of goods.

FOB Destination

A shipping term indicating that the seller retains ownership and responsibility for the goods until they are delivered to the buyer's specified location.