Consider the Following Probability Distribution for Stocks a and B

question 20

Multiple Choice

Consider the following probability distribution for stocks A and B: If you invest 35% of your money in A and 65% in B, what would be your portfolio's expected rate of return and standard deviation?

• A)9.9%; 3%
• B)9.9%; 1.1%
• C)10%; 1.7%
• D)10%; 3%

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Definitions:

Average Cost

Average Cost is a cost accounting method that calculates the cost of goods sold and ending inventory value by averaging the total cost of goods available for sale over the total units.

Subscription Sales

Income generated from selling access to a product or service over a period of time rather than as a single purchase.

Newsstand Sales

Revenue generated from selling publications, such as newspapers and magazines, directly to consumers through newsstands.

Adjusting Entry

An entry made in the accounting journals at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.