What Is the Standard Deviation of a Portfolio That Is

question 306

Multiple Choice

What is the standard deviation of a portfolio that is invested 68% in stock Q and 32% in stock R?

• A) 2.7%
• B) 3.0%
• C) 3.2%
• D) 4.1%
• E) 4.3%

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Definitions:

Non-Controlling Interest (NCI)

The portion of equity in a subsidiary not owned by the parent company, also known as minority interest.

Fiscal Net Income

The difference between total revenue and total expenditures of a government over a specified financial period, often used to gauge a government's financial health.

Dividends Declared

An announcement by a company's board of directors to distribute a portion of the firm's earnings to shareholders, specifying the amount and payment date.

Unrealized Profits

Profits that have been earned but not yet realized through the sale of an asset; these profits exist on paper but have not resulted in actual cash inflow.