Florida Company (FC) and Minnesota Company (MC) Are Both Service

question 76

Multiple Choice

Florida Company (FC) and Minnesota Company (MC) are both service companies. Their historical return for the past three years are: FC: - 5%, 15%, 20%; MC: 8%, 8%, 20%. What is the variance of the portfolio with 50% of the funds invested in FC and 50% in MC (approximately) ?

• A) 85.75
• B) 111.50
• C) 55.75
• D) None of the above

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Definitions:

Standard Time

The established amount of time it should take to complete a specific task or process.

Observed Time

The actual time recorded during the observation of a task or process.

Allowance Factor

A factor used to adjust or allocate resources, often in production or scheduling, to account for uncertainties or inefficiencies.