TABLE 17-4
a Stock Portfolio Has the Following Returns Under

question 40

Multiple Choice

TABLE 17-4
A stock portfolio has the following returns under the market conditions listed below.
$$\begin{array} { c c c } \text { Market Condition } & \text { Probability } & \text { Return } \\\hline \text { Bull } & 0.4 & \$ 200 \\\text { Stable } & 0.3 & \$ 100 \\\text { Bear } & 0.3 & - \$ 100\end{array}$$
-Referring to Table 17-4, what is the standard deviation?

• A) 4,840
• B) 4,890
• C) 124.9
• D) 69.6

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Definitions:

Net Income

The net income of a company, which is calculated by deducting all costs and taxes from the total revenue.

Incidental Costs

Minor or secondary costs that are associated with purchasing or manufacturing a product but not directly allocable to production costs.

Merchandise Inventory

Goods available for sale to customers, categorized as a current asset on a company's balance sheet.

Invoice Cost

The price of goods or services listed on an invoice, typically inclusive of fees and charges before any discounts.