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What Is the Variance of a Portfolio Consisting of $2,000

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Multiple Choice

What is the variance of a portfolio consisting of $2,000 in stock B and $8,000 in stock C? What is the variance of a portfolio consisting of $2,000 in stock B and $8,000 in stock C?   A)  .00000 B)  .00084 C)  .00108 D)  .00132 E)  .00197


Definitions:

Pension Expense

The cost recognized in an employer's financial statements for the benefits provided to employees during a period.

Defined Contribution

A type of retirement plan where the amount invested is defined, but the future benefits are not guaranteed and depend on investment performance.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB).

Discount Rate

The rate of interest applied in discounted cash flow analysis to calculate the present value of forthcoming cash flows.

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